Infonavit or Bank? What Mortgage Loan Suits Me?
For the majority of people who have worked a good part of their lives in an active and formal way, quoting and paying their contributions together with their employer to the Mexican Institute of Social Security (IMSS) and the National Institute for Workers’ Housing (Infonavit ), the search for housing is a priority issue.
It is in these cases when there is a doubt on the part of people seeking to own their own home , what type of credit to request to finance the acquisition of the property in question, because unless you have all the economic resources to pay in a only display the amount of the house or department, it is a must to resort to the search of financing options , advantages, benefits and above all the evaluation of the total amount of the costs that the credit to request will have as well as a personal projection of the flow of money with which will be counted for the current expenses of each month once the amount of the discounts by the employer or amount of the payments to be made to the bank for the payment of the credit to acquire the house has decreased.
For the aforementioned, it is important to evaluate at least the following points to decide what type of credit to contract to acquire housing:
1. Define your priority to acquire housing
- You need to initially consider the reason why you want to acquire a home: Define if what you need is a house that you will really occupy or if you will simply acquire it to take advantage of your Infonavit credit, for example, if it is a house that is within your same locality or if it is in another because of the implications of the transfer costs to go to the new house. A house that you will not occupy permanently also needs maintenance and you will have to move around recurrently for this.
- Check if it is feasible for you to repay the credit: Evaluate the credits and debts you currently have and if the flow of money that you will have left after discounting those debts and the payment that you will make every month to said credit (for several years) will suffice to solve the rest of your expenses.
2. Evaluate the type of credit that is more suitable for t i
You will have to evaluate if what suits you is a mortgage loan with the Infonavit or a banking one according to the following:
To know if you can access this credit, you will have to initially verify among other requirements the following:
- The cost of the home you wish to acquire (mainly of Social Interest)
- The points that you have (minimum 116) to be able to process your credit.
- The savings you have in the Housing Subaccount and what amount would be added to the credit.
- The maximum amount of credit you can get . If the home you want costs more than the maximum amount of credit, you will have to pay the difference.
- How much would you be deducted for the costs of titling, financial and operation.
- The monthly discount that the company for which you work will make you.
In the case of the Infonavit credit, we must also take into account:
- The borrowers (who apply for the loan) must be salaried employees who have an active working relationship with a certain minimum amount of time in the IMSS (more than one year) in their work. Infonavit credit payments are made via payroll deduction by the employer.
- If you work on your own or for fees, you are not subject to credit
- The duration of the credit depending on the amount thereof and the amount of the discounts or amortizations to it may vary between 15 to 30 years.
- If during the time the credit lasts, you stop having a labor relationship for dismissal you will have to continue paying the amount of the same for your account, request an extension for up to 6 months to not pay the credit or request the support to the insurance Infonavit for Unemployment “Payment protection fund” (support up to 6 months and every 5 years). In these cases the interest will continue to be generated and accumulated to the total unpaid credit balance.
Bank mortgage credit:
Although the conditions for this type of credit is variable and depends on the banking institution in particular , it is advisable that you evaluate and take into account at least the following:
- You can apply for a credit of this type even if your source of income is not for wages and salaries.
- Your capacity to pay the credit must be guaranteed with another important source of income.
- This type of loans is intended to purchase homes that are not considered of Social Interest , unlike the Infonavit whose credits are destined to grant loans for this type of housing (up to $ 1,400 thousand pesos approximately)
- You must have available a part of the cost of housing to pay for the concept of down payment plus notarial and deed fees.
- One element to take into account is your credit history, which is not the case with Infonavit, since banks require you to have a good credit history in topics such as bank and departmental credit cards, auto loans, etc.
- The employer contributions you make if you have an active labor relationship would not be used to pay the loan.
There may be many more elements that would be important to evaluate when defining the type of credit to apply to acquire a home; However, it will depend in large part on the particular situation of each person so, it is advisable to go with a real estate consultant of the bank of your choice or approach an Infonavit Service Center (CESI) which are offices that are throughout the country to give you personalized attention on all the procedures related to your savings and credit in this Institute.