This subject may seem complicated at first, but, when well explained, it is very easy to understand what real estate financing is. In fact, it is nothing more than a line of credit offered by financial institutions – often in partnership with real estate consultants – for use in the purchase of residential or commercial property.
Even in times of crisis, there is credit available in the square for those who have a clean record and are planning to buy their own home. Simplification in the real estate financing process also helps to make this investment viable. Just count on a specialized company to assist you in all stages of the purchase.
To better understand how this works, we clarify below the main factors you need to know before financing your property. Follow the reading and plan!
How does real estate financing work?
First, you need to find the property you want to buy. The property can be new or used, incorporated or not to a construction company, ready to live or to be renovated or even that house that the neighbor offered for sale and that meets your needs and expectations.
Once the ideal location is found, it is time to do a financing simulation. On the CrediPronto website, you can simulate the amount to be financed based on the characteristics of the property in question.
Generally, the simulations show the maximum amount that can be financed, the initial amounts of the installments, and the other amounts in installments, the interest rates and the maximum amount of installments available, among other pertinent information. From there, you can reflect on these issues and enter the process.
What are the types of financing?
In Brazil, there are only two ways to finance a property: through the Financial Housing System (SFH) or through the Real Estate Financial System (SFI). The basic difference between the two systems is in the calculation of financing.
Generally, SFH has a lower annual interest rate, as there is a law prohibiting banks from charging more than 12% interest per year. In addition, in this system you can count the balance of the Severance Pay Fund (FGTS) to make the financing.
If you fit that profile, it may be that the SFH system is more advantageous. To assist you in your decision, consider the main characteristics of the two types of financing, listed below:
Financial Housing System (SFH):
- only for residential properties, which are the buyer’s first property and which are located in the city where he lives or works;
- the maximum value of the property must be R $ 750 thousand for the states of São Paulo, Rio de Janeiro, Minas Gerais and the Federal District or R $ 650 thousand for the other states;
- the financing term may be up to 420 months (35 years);
- the interest rate is up to 12% per year;
- the financing limit may be up to 90% in the SAC table (in which the installments gradually decrease) or up to 80% in the Price table (in which the installments remain constant);
- FGTS can be used according to pre-established rules.
Real Estate Financial System (SFI):
- for residential or commercial real estate. The property may be in any location and does not necessarily need to be the buyer’s first financing;
- there is no value limit;
- the financing term may be up to 420 months (35 years) for residential properties or up to 120 months (10 years) for commercial properties;
- the interest rate varies according to the bank, but it usually exceeds 12% per year;
- the financing limit may be up to 100% in the SAC or Price tables;
- it is not allowed to use FGTS resources in financing.
What should I worry about?
A very common mistake in real estate financing is that the buyer is too focused on the total price of the property and ends up forgetting other important issues to consider.
The deadlines, the entry fee, the interest rates, the financing conditions, the real estate company that will broker the business … All of this makes a difference to finance your property with quality and security.
As for the deadlines, for example, it is essential to be attentive to the dates established by each financing system. Only then will you know exactly how much time you have to pay off the property and be able to organize yourself financially so that it doesn’t get complicated in the future.
About interest rates, as much as you are already used to a certain bank, the ideal is to research several institutions to find out which one offers a rate that is not abusive to your pocket.
As for the financing conditions, you need to consider the sum of all issues relevant to the process – terms, interest, institution, etc. – to make sure that they are compatible with your reality and only then close the deal.
What kind of company can I look for?
Undoubtedly, this is one of the most important questions for you to understand how real estate financing works. This is because it is the role of the real estate consultancy to thoroughly clarify the entire process for the buyer.
After all, have you ever thought about the nightmare that it would be to finance a property in an unprepared consultancy and spend the next 35 years of the term having a headache with the operator?!
For this reason, it is essential to have a consultancy that has a good reputation in the market and that offers financing conditions compatible with your purchase expectations.
In fact, the quality of service must be a major differential of the company, in order to explain to the customer how each step of the process will work. Only then, he will feel really safe and comfortable to close the deal.
And when it comes to reliable and quality real estate financing, CrediPronto is a great example. The consultancy was created through the association between two companies that are references in the Brazilian real estate and financial market: Lopes and Itaú.
In this partnership, CrediPronto offers financing of up to 90% of the value of the property, with terms of up to 360 months, in addition to the great differentials related to the quality of service, meeting deadlines and reducing the bureaucracy of the process.
Credit analysis, for example, is done in just 24 hours. That is, the customer has full assistance from the first contact with the company until the moment of handing over the keys to the property. So, it was easy to understand what real estate financing is and how to make the best choice, isn’t it?
If you are interested in the subject, take advantage and contact us to finance your dream property with total security and agility!