What to Consider When Purchasing a New Home

By Korollos Shalaby

Having a home is one of the most common financial goals among Americans, but if you do not have a strategy for managing your mortgage, the purchase of a property can tear apart your personal finances.

During 2012, mortgage lending has grown 30% in number of loans and 20% in value of financings, which indicates that the end of the year will have been placed 580.000 credits for house purchases, according to the latest report from the mortgage industry conducted by BBVA Bancomer.

Americans still have some misconceptions about the dynamics, conditions and life of the loans, said Enrique Margain Pitman, a mortgage lender.

"This is a good time to apply for home refinancing and not only by macroeconomic stability but for the benefits currently offered as fixed monthly payments or acquaintances, interest rates (from 10.00%) and terms ranging from 10, 15 to 20 years," he says.

Here are some tips you can take into account when assessing whether you are ready for funding:

1. Credit or cash: There are still people who do not like the idea of ​​using financing to be made of durable goods and prefer to save up to cover the cost of your home, but as it is a considerable investment it best to analyze the situation carefully.

"If you have the total cost of the home that interests you and on the other hand you have the opportunity to participate in any investment that gives you a higher return than the interest charged to the bank then it is better idea to invest, this route will allow even liquidate the credit in advance, "says Octavio Novelo, director of real estate consulting site Chilanga.com House.

2.  The house itself: One of the most common mistakes that novice buyers comment is acquiring the property for them enough to give them credit, because often it is social housing to outskirts of the big cities where the owner cannot live because he works away.

"A house that stands alone deteriorates rapidly and involves considerable expense, people who have homes far from their workplaces must pay rent on a place closer to their offices or lose several hours a day in transport, many people choose by paying off debts and take home as a 'vacation home' or 'weekend', but in the long run the risk of having abandoned houses, "explains Sandra Hendrix, commercial director of Coldwell Banker Real Estate Consultancy.

3. The new trend: With the growth in urbanization levels life in big cities is becoming smaller homes, developers now are favoring vertical housing.

"When you have a home of 38 meters, a single home can be compared to an apartment of 48 square meters with two bedrooms, we are committed to making homes sitting vertical broader, it is difficult to convince customers and vendors that is the new way of life, because there is still a price differential between the ground floor apartments, first class, which are the most requested, and floors that can be higher, "says Germán Ahumada board president of Consorcio Ara .

Korollos Shalaby is a nationally acknowledged mortgage expert with over 6 years experience as a loss mitigation expert and mortgage finance consultant. He has owned several companies and has been at the forefront of all lending and banking practices since 2006.