Buying a home is not an easy task, but it is that buying a house with the 100% mortgage is even more impossible.
Yes, it's an exciting time, you imagine yourself making a life in your new home, but getting there is certainly a narrow road ahead of you.
These things are always complicated on one side or the other. Let's be honest, when it's not the seller, it's the impossibility of making an appointment, when it's not that you have to look for another date to go to the agency, what once had one price now has another, not forgetting the 'dear' mortgages.
The dispute with the bank is another war. That is why in NUWE We like to be realistic and not give away your ears. Some issues are complicated, but not impossible.
Buying a house is a step that requires a lot of thought and should not be decided upon lightly, and for this you should take a good look at your bank account and your financial capacity.
It is clear that each mortgage is different, since factors as diverse as the bank with which it is signed, the first ones, the variability of some parts and the amount to be paid over decades and decades come into play.
It is also true that mortgages are no longer given as happily as they used to be.
The banking entities are extremely vigilant with each of their clients and they study each clause down to the last millimetre to know what they are tying themselves to in the future.
How much you need to save to buy a house
Getting a mortgage can be complicated, especially in cases where there is no financial muscle to allow the bank account to take on such a signature.
In other words, it is necessary to have savings to ensure that the first impact of the mortgage is not harmful, to overcome those first expenses that arrive almost all at once and which seem a secondary issue in the face of the scenario of opening a new home.
Nowadays, banks do not give a single mortgage for 100% of the value of the property or for the entire amount to be paid for a property.
Well, there will be some cases where it does happen in a simple way.
But what really needs to be taken into account when applying for a mortgage is what financial capacity we have to secure our future.
It is not at all advisable to apply for a loan of this type without any savings, mainly because the bank, as I have already mentioned, will not cover the entire amount of the operation, which is not only to pay the seller of the property.
Among the extra' costs added to the cost of the property are the down payment to confirm the transaction, taxes (which depend on each autonomous region), notary fees, land registry, agency and bank fees.
We are talking about a calculation that can involve an extraordinary effort and that in many cases is not taken into account when signing a mortgage or applying for a specific amount.
So how much do we need to have saved to take out a mortgage to cover our housing?
Is there a way to get the mortgage to cover as much of the cost of the new house as possible?
How to buy a house with the 100% mortgage?
These expenses account for about 20% of the total operation, so the recommendation would be that this amount of money could be covered directly from the funds in our bank account.
But this is where the new ICO guarantees for first homesThis is an extraordinary help that can help us to obtain a clearly favourable mortgage.
How to buy a home with the mortgage 100%
The new ICO guarantee that can be claimed in 2024 amounts to up to 20% of the value of the property.
Its aim is to lighten the first burdens that a new homeowner has to bear, so that young people and families can afford to buy a new home without having to spend years and years of money, just when household finances are so stretched to the limit.
There is only one very important key for these guarantees to be used to obtain the financing of 100% of the price to be paid for the property: that the appraised value of the property supports it.
This means that a ICO guarantee to buy a house with the 100% mortgage a house will be of maximum use to us as long as the price to be paid for the house is in line with the appraised value, because otherwise that amount will have to be paid directly from the bank funds.
And it is that the ICO guarantee will be adjusted to the appraised value and not to the purchase price, so if we overpay that amount it will not be covered by public aid.
This is why experts recommend that in this case personal savings should be an additional 5% of the purchase price in order to be able to cope with possible discrepancies between the market price and the actual value.