You spend days looking at the Entreparedes website, https://www.entreparedes.pt/en-gb/sell talk to the consultants, visit several properties until, finally, you find the ideal for your life. However, this initial stage is just the beginning of a long journey that may or may not be more difficult than finding your dream property: winning the letter of credit.
But don’t worry: we will give you tips on how to facilitate and better negotiate your credit to finally win your home.
Organizing change. In your finances.
To achieve the dream of your home, you need to draw up a tactical plan, considering your own reality. And for that, a careful analysis of your finances is essential.
Put in a spreadsheet all your monthly expenses and also how much you earn. This will help to find your effort rate. A calculation that banks make to know how much their monthly income will be committed to the provision of mortgage loans.
By convention, the market states that the effort rate must be 30%, that is, the installment and its monthly expenses cannot exceed 30% of its budget. In rare cases, some financial institutions allow the effort rate to be 50%. But this is the exception, not the rule.
From spreadsheet to action.
One way to assess and reduce your spending for credit approval to be easier is a real change in behavior. Doing your household budget helps you to see where there can be more savings.
Everything should be included for a more realistic picture: spending on transportation, leisure, food, streaming services, travel, etc. Write down everything, without exception.
Another point is to check whether or not you have extra income or reserve funds, such as investments or savings. One of these options can help you pay off a large debt by improving your effort rate.
See if it’s worth the wait.
In early 2021, banks will be prohibited from charging various commissions related to home loans. In practice this means a possibility of immediate savings for the purchase of your home.
Currently, banks can charge fees for various transactions, from contractual analysis to contract termination. And, 2021, for example, if you want better negotiation, banks will be prohibited from charging for this new analysis. Another very relevant point, you will not need to have an account with the same bank that will ask for the housing credit. In addition to being more advantageous, you can search for the rate that best suits your pocket.
If you want more explanations, talk to our consultants, https://www.entreparedes.pt/en-gb/contacts, it will be a pleasure to assist you.