Buying an apartment is a serious decision that should be carefully considered. In addition to choosing your dream apartment, it is also necessary to complete a number of formalities that will allow us to become its full owners. Before we go into action, however, we should carefully read all the important information that will give us the opportunity to safely acquire the above-mentioned. In this article, we will touch on some basic issues related to the purchase of an apartment.
Step one – choosing the right apartment
The first step we should take towards buying an apartment is choosing it. Due to the fact that the vast majority of us treat our own apartment as an achievement of life, it is worth carefully reviewing the apartments available on the market in order to choose the most suitable for us. The real estate market is divided into two segments. The first of them, called secondary, includes second-hand apartments. The second segment is the primary market with new apartments in Krakow, i.e. coming directly from the developer.
Another important issues that are worth paying attention to are the apartment size, its layout and location. Before making the final decision, we should check the distance from our future M to the kindergarten, school, shops and whether it is well connected with the rest of the city, and how far it is from our work. Of course, in the case of the latter, it should not be the most important argument that guides us in making the final decision, because, as we know, work can always be changed.
Step two – budgeting
Buying a flat is a considerable expense, and therefore many people use a mortgage in this situation. However, in order to be able to contract it, it is necessary to have an own contribution, choose a specific property and earn a certain level of earnings that will affect our creditworthiness or the lack of it. When financing our purchase by a bank, we must bear in mind that the amount of the mortgage cannot exceed 80% of the value of the property that we want to buy. Therefore, regardless of whether we have an eye on new flats in Krakow or used flats, it will be necessary for us to have a so-called own contribution in the amount of 20% of the property value.
Step three – applying for a loan
Assuming that it is with the loan we will want to acquire our own apartment, it is necessary to complete a number of formalities to be granted one. First, you must submit a loan application to a specific bank and attach to it a certificate of our earnings and a few additional documents, which will depend on whether we are betting on new apartments in Krakowor for second-hand apartments. In the case of the former, the bank will ask for an information prospectus with an individual part.
The above-mentioned information should contain information such as: investments completed so far by the developer, plot development plan, as well as information whether enforcement proceedings are pending against the developer. In addition, a reservation or development contract is also necessary. However, if we plan to purchase an apartment from the secondary market, then a preliminary contract with the seller should be submitted to the bank. However, it is not obligatory in all banks, which may undoubtedly speed up the process of obtaining a loan.
Step four – concluding a loan agreement
When we have completed a number of formalities and provide the bank with all the necessary documentation, the next step is waiting for a loan decision. We should take into account that it will not always be possible to obtain financing from the first bank we go to, so it is not worth getting discouraged. Many people decide to use the support of a financial advisor who, at their request, is looking for a bank that will provide it. If we plan to choose new apartments, Krakow very often the developer also has his advisers who make every effort to ensure that financing is granted to persons wishing to acquire one of his premises. Assuming, however, that the loan will be granted to us, remember to carefully read the terms of the loan agreement that we will sign. Buying a flat is also a necessity to insure it, therefore, when concluding a loan agreement, we can ask for an insurance offer at the bank’s disposal.
Step five – formalities related to the purchase of an apartment
After completing all the necessary formalities related to the loan, the next step is to sign the final contract for the purchase of an apartment in the form of a notarial deed. Regardless of whether we chose new apartments in Krakow or used apartments, the procedure in both cases is exactly the same. Before picking up the keys, remember to write down the handover protocol and the meter readings with the developer or the previous owner of the apartment.