Financing your real estate purchase

Getting into a real estate purchase is a long-term commitment. The sums are often substantial, the rates fluctuating and the risks existing. Such a project therefore deserves a good weighing of its interests, control of expenses and a detailed analysis of the situation. Reasons why it is important to keep a cool head, even if the object seems to correspond in all respects to a dream. Because dreams have a price, which must be calculated at the right time by putting the odds on your side to obtain financing and on the best terms.

Beyond the price of the object, we must not neglect the additional costs linked to a real estate purchase, such as notary, registration and schedule fees, as well as the tax impacts. The euphoria engendered by the desire for a perfect object should not obscure the other parameters, because in real estate as with any other purchase, warning is forearmed.

Before getting started, there are many questions to ask, the answers to which vary depending on the property and the personal situation of the buyers. For instance :

What is my ability to buy?

The ability to buy depends on both your equity and your income. But what is the calculation rule? What can you consider as equity? Is it possible to use a pledge?

How to choose my property?

It is customary to say that “Location, location and location” are the three major criteria for a property that will change hands over the course of a lifetime. It is important not to get the wrong target and to carefully consider whether it is a project for a couple, thirty-year-olds, parents whose children have left, retirees, setting up a self-employed person, of a rapprochement with his place of work or an investment.

How to get a mortgage?

Once your budget has been determined and the accommodation selected, you will need to apply for a mortgage loan from a bank or other lender. What are they ? Are their eligibility criteria the same? How to choose the duration and the type of rate? What is a good fundraising strategy?

So many questions that often have multiple answers, varying drastically from one case to another. Financing a real estate purchase requires in-depth reflection, in-depth knowledge of the different uses and, most often, outside help and advice. Not only for obtaining the loan, but also for the analysis of all the parameters related to a tight market.

For tailor-made services, Homequest Immobilier can call on groups of experts, including mortgage financing specialists who are familiar with the market and its fluctuations. In Lausanne, Daniel Borges, director of the Vaud branch of the company Resolve gave, with pleasure, some leads to better understand the challenges of a real estate purchase.