Buying a home is not cheap.

Buying a home is not cheap.

Whether you have chosen a house or an apartment, it is an expense that will occupy much of your finances and a commitment that will last even up to two decades. See homeassociates.org for a write-up

And although the situation is complicated, this has not stopped people from applying for a mortgage loan to become owners. However, if you are one of those who are looking for the perfect time to buy a new apartment, there is a point you should consider before launching into the pool.

This is the initial fee. Some financial institutions require at least 20% of the value of the home as an initial fee, while others reduce it to 10% and even, you can find options where they do not require this payment. But is this something positive? Actually, not quite.

Credit home

Credit home

The initial fee reduces the amount they will lend you, that is, if you give the bank 20% as an initial fee, the credit will be to finance only 80% of the home. This is positive because it means that you can cancel the credit in less time and therefore pay less interest.

But if you only have a minimum amount for the initial fee, that is, you can barely cover 10%, some experts indicate that waiting until you collect a higher percentage is also a good alternative. Then, you have two options, you can decide to apply for the mortgage loan or postpone the application a few months, until you can increase the amount for the down payment.

A good way to know which one suits you best is to compare how much you would pay or save in each case. To obtain an exact calculation you can use web simulators such as Albertine.com.cl. That way you can make an informed and responsible decision.