How much money do I need to buy home

Buying a home is an excellent investment, because not only will your place of residence, but you can create wealth. However, doing so with the help of a non-cash financing and generates a long-term commitment that directly impacts your wallet. Therefore, before embarking on this long adventure you should analyze your finances and determine if they are sound, no major debts and with good savings. The health of your wallet is the green light that indicates that it can cope with a commitment for the next 15 years.


The next step is to know that you need a capital to cover the down payment (which will ask any bank ) and pay the extra costs that result when you give a credit. In addition to this initial amount, which comes directly from your savings, you should do the math to see how much money you have to pay the monthly fee.

Initial Capital
The cost also includes the payment of attorney rights by legally register your own name as well as the payment of taxes on purchases. Depending on the locality where the house is, this cost varies. The average range is between 6% and 10% of the value of the property. The notice is assigned by the bank .

• Commercial valuation. This paper estimates the market value of a property according to their physical characteristics, finishes, infrastructure and location. The bank requested the appraisal because it is based on determining the amount of credit granted you. For example, if the property is being sold at $ 1,000,000, but the commercial appraisal issues a market value of $ 800,000 and the bank provides up to 80%, in this case you will finance 80% of $ 800,000.

The price of this document varies according to each institution, but estimated to be 2.5 per thousand on the price of the house. Check out our Infographic: If my house cost a million how much money I need to shell out?

Savings plan to reach the goal
If you have this “cushion” do not be discouraged, we offer this savings plan to achieve it.

• Determine the total value of the house you want to buy.

• Calculate the monthly payment you would pay if you will buy the house today and add 10% (to cover annual maintenance and property tax).

• Open an investment account and deposited monthly set amount.

• If after six months you realize that if you save that amount is not enough to cover your other expenses, then you have to redefine your plan, because now you know you thought the allowance to pay is too high.

• If you managed to accumulate savings six months without incident, congratulations! you can buy this house because you want knowing that your income will comfortably allow.

How long it takes to save enough
If last year you do it for $ 8,000 pesos a month for three years, in an investment account at 6%, your savings will accumulate over $ 300,000 pesos, which are sufficient to cover the down payment and initial expenses of a house more than a million right do not seem so difficult?  This plan not only achieves the goal of saving for a down payment, it also shows you if you have the financial capacity and discipline that involves taking a mortgage before you even sign for it.

Case Study
Applying the above expenses, look how they would work in a credit of various ranks:

How much you can spend monthly
Once you know approximately how much seed money you need to borrow and whether you have it or know where you can get it, you need to know how much money you have to pay monthly for a mortgage.

This task is simple but you must take care of every detail of your monthly expenses. The first is put on paper how much you earn. Total your net income (what you get after taxes). Consider in this line your payroll and income supports for business and investment.

Now, calculate how much you spend, consider all items, for only thus really know your borrowing capacity. Calculate your expenses on transportation, food, school fees, credit card, entertainment, insurance, extra expenses and monthly savings. Although not an expense, allocate at least 10% of your monthly income must be provided savings on your monthly payout.