Opting for real estate financing is the best option for those who want to buy the first property, but it does not have all the value for payment in cash. Also considering that not always, even with the total amount in sight, it is interesting to de-capitalize. For those who plan to leave the rent, invest in other properties, move to something bigger, check out the step by step that we have prepared for you. Understand in 6 steps how real estate financing is done.
See 6 steps for real estate financing
1 – Simulation of real estate financing
The Simulation must be done before choosing your property. It is worth consulting a bank to find out what the real values are according to your need, thus avoiding surprises and even having the possibility to plan the decision. Knowing if the values of the installments are within your budget will help you understand how much you can spend on a property
2 – Credit approval of real estate financing
Credit proposal: In this step, all the requested amounts of your simulation are passed to the bank in the form of a proposal. The bank has a deadline to approve the requested amounts. Each bank has a credit approval policy, some are more bureaucratic than others and require less or more documents. Some give preference to those who already have an approved checking account, salary account etc, so it is important to try to approve your credit in at least 2 financial institutions (as each institution has its policy, the approved amounts may be different in each one of them , including their rates and% of financing that the bank can release). If approved, it starts the third stage of the process.
3 – Necessary documentation of real estate financing
Documentation: After the credit proposal is approved, the bank requests all the necessary documentation to start the contracting of your real estate financing.
For credit approval: RG, CPF and Proof of Income (in some cases it is necessary to present the Income Tax)
Necessary documents of the buyer to contract the financing: Buyer form (personal data and negotiated values), Form of declaration of health of the buyer and Proof of marital status (for clients other than singles).
Necessary documents of the seller to contract the financing: Form of the seller, Proof of marital status.
Of the property, to contract the financing: Valuation (bank requests) and Property registration and IPTU cover.
Real estate financing is a simple procedure. If all the documentation is in agreement for the contractor, it can happen in a reasonably quick period, taking into account that other services are necessary for the completion (such as the notary publics), but all this depends on the conditions of the sellers, buyers and conditions of the property. .
4 – Property valuation for real estate financing
Valuation: This procedure is performed to ensure the housing conditions of the chosen property and to guarantee its purchase. It serves as a guarantee for the bank to be able to assign credit to the buyer and ensure that everyone is safe with the transaction.
5 – Issuance of the real estate financing contract
The Contract will be issued for signature and registration with a notary with a detailed description of the parties respecting the legislation, then it must be returned signed to the contracted institution. After the contract registered with the notary (it is the buyer’s obligation to take the contract for registration) the bank can release the amounts to the seller (s) and to the buyer (s) if they choose to finance the amount of the ITBI.
6 – Release of values of real estate financing
The release of the appeal to the seller of the property takes place within 5 business days after the return of the real estate financing contract duly registered with the Property Registry Service, accompanied by the registration that contains the registration of purchase and sale.
What else you need to know about real estate financing
- The CrediPronto finances up to 90% of the value of your property.
- The value of the installments of the real estate financing cannot exceed 35% of the family income.
- The payment term for real estate financing is up to 360 months (30 years) subject to approval.
- Your FGTS (Time-of-Service Guarantee Fund) can be redeemed at Caixa Econômica Federal and used to pay off installments or even as a down payment on your property.
- Interest on mortgages are around to 8% per year. At CrediPronto, the rate is 6.9% per year + TR (reference rate).
- The SAC (Constant Amortization System) table is used in real estate financing.
These are the steps to conquer your property through real estate financing. If you want, just do a simulation to kick-start this endeavor.