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Why should I not finance 90% of the purchase of my new house?



For many, finding a bank or financial institution that grants mortgage loans with only a 10% guarantee, is a dream or an opportunity that should be seized as soon as possible. However, you should keep in mind that it really isn’t.

In the world of credit, it is always advised to get out of debt as soon as possible

In the world of credit, it is always advised to get out of debt as soon as possible

It is not worth financing the small purchases you make in many installments since all you are doing is accumulating interest. And although in large purchases such as those of a new car or home, it is understandable that canceling them takes much longer, this should not be abused.

In this sense, if you are able to give a higher initial or down payment

In this sense, if you are able to give a higher initial or down payment

The recommendation is that you do so. Although the bank offers to finance up to 90%, you can choose to deliver a down payment of 20 or 25% of the value of the home, thus obtaining a considerably lower credit and therefore, you will pay less interest and cancel the debt in A shorter term.

Before deciding how much you can deliver as an initial fee, make a list of the expenses that a new home encompasses, not only in the documents to be processed, but in moving and arrangements. If after this, you are able to do so, you should know that reducing the amount you are financed will have a positive impact.

Compare them and only then choose the one 

credit loan

Now, something that you have to take into account is that some banks have the condition that the initial fee does not exceed a certain percentage, so before choosing an institution, you should know what options you have, compare them and only then choose the one that most agree.

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