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Savings tips for the initial down payment

buy a house with mortgage loans requires a big prior research, to have answers to all the questions that may arise in the process. The bank does not finance 100% of the purchase price of the property, so it has to give a Prohibited. And, in addition, there are still process expenses plus taxes that you will have to pay. In other words, you still have to gather a high value in order to move forward.

Therefore, it is necessary to know all the costs and start planning savings. In this article, we give you some tips to get organized and raise money for this process.

Before any step, you must talk to your bank. First, so as to understand what conditions are necessary so that you can be eligible for a home loan. And then so that you have an idea of ​​the cost you may have: between process expenses, taxes, and the initial down payment you will have to pay.

Attention, the bank lends a maximum of 90% of the amount acquisition or appraisal (the higher value) of the property. That is, you have to give the missing input value.

When talking to the bank, it will analyze your financing conditions and your effort rate, to know the maximum value that your financial situation allows you to offer.

If your current situation not yet allow you to purchase a property through home loans, as you will still have some time to save money, can try to meet the necessary conditions in that period.

So, find out the total cost that taking out a home loan may imply, depending on the value at which you want to buy the property. So that you can, in this way, establish a value to add and start your savings.

2. Make a monthly budget

Knowing, at a glance, the value you have to reach in your savings for the entry of housing credit, start organizing yourself through a monthly budget.

Write down, for example, in a table, your fixed and variable monthly expenses. Put a maximum amount you can spend on expenses that vary. This is so that it does not exceed that ceiling and manages to establish limits on what spend.

Don’t forget to also point a value to be withdrawn monthly for your savings.

Also read: Do you have a reduced budget, but want to live alone?

3. Analyze expenses and see where you can cut

Carefully analyze expenses you have in your monthly budget so you can see if there are any where you can cut.

For example, do you have fixed expenses with subscription services? Consider whether, at this stage when you want to save, you can do without these services.

For variable expenses, try decrease the amount you spend. You don’t need to change your lifestyle, but there are always solutions to not spend so much.

For example, if you go out to dinner, look for discounts online. O site The Fork commonly offers restaurant discounts if you book at app.

4. Bet on the profitability of your money

if you already have any money saved, you can try to monetize it to generate even more savings.

Currently, there are some options to monetize your money, considered of low risk, with reduced capital and remuneration rates. As:

  • Savings Certificates – State Savings Products are capitalization products with a return automatically applied to generate a new return. It reflects the strength of compound interest through interest that earns on interest, on interest. They are sought after by those who want to monetize their money with low risk;
  • Capitalization Insurance – Capitalization Insurance is tax products with guaranteed capital. That is, they have a guaranteed interest rate annually, but it varies with the renewal of the policy. But be careful because some of these insurance policies have a variable component that results from a formula for calculating the insurance company’s profits.

Although they are considered low risk products, you should inform yourself in detail beforehand. Consult the redemption conditions and consequences if you need, for example, to resort to cash who applied before the agreed deadline.

Another tip is not to invest all your money, so you don’t jeopardize your finances and always keep one emergency fund in case of any eventuality.

5. Monetize your hobbies

In order to save for the down payment of the housing loan, you can also monetize some hobby that you have apart from your professional activity.

Currently, it manages to monetize small businesses through the digital world. With social networks, it became easier to promote work.

So if you have a hobby as: photography, engraving, cooking, jewelry making, writing, drawing or craftswhy don’t you bet on selling your services online?

So create a page with examples what he does, to make his work known and to earn money online extra.

Also read: 10 savings tips that will help you monetize your money

6. Put the money aside

So that you don’t have the temptation to use the money you’re saving and get a better idea of ​​how much you’re saving, try put it aside.

can do it from Many ways: withdraw the money and keep it in a piggy bank or safe, place it in a savings account or secondary account, or online through, for example, Paypal.

7. Look for the best proposal

When you are close to achieving savings for the down payment of home loans, start making a exhaustive market research to find a good deal.

And a good deal and profitable in the long run also goes through the contracting of housing credit. Therefore, it is important that review several proposals from different banking institutions, to find the best one.

For that, you can always enlist the help of Doctor Finance that saves you from bureaucracy and looks for the best offer for your case.

Also read: How to create a budget after buying the first home?

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