Financing is a long-term credit line offered by financial institutions, public or private banks for the purchase of real estate.
From the moment the credit is released for real estate financing, the financial institution transfers the amount referring to the request to the seller of the property. This amount can be the total value of the property or part of it.
Then, as agreed in the contract, the buyer of the property must pay the installments of this financial agreement. These installments vary according to the type of mortgage and the payment term can reach up to 35 years.
To start a loan application, you need to pay attention to some prerequisites before applying to the bank. If the buyer’s profile does not fit the requirements, the order may be denied, frustrating, even momentarily, the realization of a dream.
The general prerequisites are:
- Civil Majority;
- Demonstrate Sufficient Income To Indicate Your Ability To Pay The Installments;
- Installments Cannot Exceed 30% Of The Buyer’s Household Income; And
- Not Have Your Name Included In Credit Protection Agencies (SPC, SERASA, Among Others).
After verifying these requirements, it is interesting to make a simulation of the financing. It is a very important step for those who are looking for a good mortgage.
This simulation can be done online, on the website of the financial institution itself.
There are different banks and institutions on the market offering financing packages, which means that interest rates and payment terms change depending on the financial institution.
In addition to having the best prices and rates in the market, Prestes Construtora provides ITBI (Tax on Transmission of Real Estate) and free registry for some properties.
Therefore, it is important to choose the financial institution with the best financing conditions for you, that is, lower interest rates and values and terms that suit your needs.
Do you want to have other options to evaluate when deciding how to buy your property? How about knowing how to finance Minha Casa Minha Vida?
After simulating the financing, choose the bank or institution of your choice to file the application. To finance a property, it is necessary to go to the bank branch in person, as this process deals with a credit line only granted in person at the institution.
When applying for real estate financing, the next step is the delivery of documents and credit analysis. Initially, the documents that must be taken to the financial institution are:
- RG And CPF, Originals And Copies;
- Proof Of Marital Status And Proof Of Income; And
- Your Spouse’s Documentation, If You Are Married Or In A Stable Relationship.
Other documents are requested after the start of the funding application; we’ll talk about that below.
Following this documentation step, the bank carries out the credit analysis. In this analysis, the bank confirms the information on the income and calculates whether it is compatible to pay off the financing debt. Generally, the amount of financing granted cannot commit more than 30% of your income in your installments.
The real estate financing process is quite bureaucratic. There will certainly be some visits to the bank until this documental stage is completed.
In one of these visits, it will be necessary to indicate which property will be financed, so that an assessment carried out by the bank itself can subsequently take place in order to confirm the value shown by you.
The deadline for the report to be completed is approximately 15 (fifteen) days. It is at this point that the bank also analyzes other documents relevant to the seller to make sure that the property does not have any judicial or legal pending.
After evaluating the property and releasing the credit, the financial institution releases the real estate financing contract. With the signing of the contract, payment of installments begins.
This contract must be registered with a Real Estate Registry Office, which makes the buyer legally recognized as the owner.
To register the property, it is also necessary to pay the corresponding amount in the Registry table.
The cost of registering property varies by state and the value of the property. In addition, the ITBI (Tax on Transmission of Real Estate) is also levied. Prestes’ projects in Ponta Grossa and Tibagi have free ITBI; in Londrina, the ITBI is paid in up to 18 installments.
From that moment on, the buyer will comply with the financing agreement, paying the installments established in the contract and with the possibility of repaying the debt in national currency or with a FGTS balance.
What types of financing
When choosing a loan, the buyer must choose what type of interest to deal with. Fixed or post-fixed interest refers to the monetary restatement of the financing. This means that there are different ways to calculate the interest rate applied to the installments to finance a property.
In pre-fixed interest, the variation of rates is defined in the contract. In post-fixed, there is a variation throughout the contract according to inflation rates.
To finance a new property, the Housing Finance System is the means used. It is possible to use the FGTS as part of the payment.
For this, it is necessary to prove at least three years of CLT work (signed license), and the installments cannot be higher than 30% of the buyer’s total income.
Similarly to new property, to finance a used property it is also possible to use the FGTS balance as part of the payment.
To finance new or used properties, the interest rates and documentation are the same. The difference between these options is the type of financing and the number of installments.
Financing for land purchase is released by the financial institution as long as there is all the infrastructure in the surroundings, such as access roads, electricity, basic sanitation, etc.
To ensure that the land will be used by the buyer as a property, legal measures and purchase and sale documentation are specific, such as the definitive deed of the land.
Renovation and expansion
This type of financing is used for services to improve or increase the built-up area. The definitive deed of the land is also required so that the legal procedures can take place without any problem.
What documents are needed
For each stage of financing, the bank or financial institution requests a series of specific documents, which may even vary from one institution to another.
Documents for financing a property are also different between buyer and seller. Generally speaking, RG, CPF, proof of residence and FGTS extract are the most recurrent requests.
Proof of income is also required documentation. In the case of workers under the CLT regime, the payslip is required. For self-employed workers, income tax, service provision contract or union declaration of the category are ways to prove income.
For informal workers, proof of income can be done in other ways, as required by the manager of the financial institution or bank.
Count on Prestes to finance your property
Now that you know how property financing works, it’s time to make your dream of home ownership come true!
Financing can be done by your bank of choice or by a real estate company.
But remember, you need to look for a place that you trust and that has credibility in the market, as this makes it easier to avoid problems.
At Prestes you will find the best interest rates and the ideal type of property for your family, choosing between a house and an apartment.
In addition to having the best prices in the market, Prestes Construtora offers ITBI and free registry for some properties.
For more information, contact one of our brokers through our website or WhatsApp, at (42) 9 9845-0003, and request a credit analysis now.
Prestes Construtora: by people for people
Different, bold and innovative: this is Prestes Construtora , which has been operating in the market since 2009. With the mission to generate prosperity and develop happy communities, Prestes develops real estate projects that turn dreams into reality.
The company focuses its expertise on the Minha Casa Minha Vida Program and works to become the best and largest construction company in the segment in Paraná, without forgetting the high-end businesses. Its commitment is to promote the quality of life and well-being of its customers and the community, with ethics and responsibility.