When buying a home, the hardest part is choosing an apartment, not getting a loan

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The process of obtaining a loan is so simple and convenient that it is much more difficult to make a decision and find a suitable apartment, ”says Sabine, project manager for the EHR group (26 years old).

Thanks to the Good Finance support program for young professionals, Sabine moved with her husband Andris (32 years old) to their new shared apartment in early May. The loan is issued to both spouses.

Sabine is a public relations specialist by training and now works as a project manager in the EHR group. Andris, in turn, received a diploma in environmental protection and works in the Baltic Cargo terminal. They were both born in Ventspils. Young people came to Riga to study, but took root and decided to stay here.

If at first there was still the thought of returning to your hometown, now, after buying your own apartment, this issue is no longer on the agenda, at least in the next few years. “We like Riga. There are many opportunities here, we have made new friends and our whole life is here now, ”says Sabine, adding that now they go to Ventspils only to visit their parents.

Sabine and Andris have been together for eight years, and a year ago the young people got married. Wedding and the desire to have their own housing became like the next level in their relationship. Now Sabine recalls that she was interested in a mortgage loan before the wedding. Then she was advised to buy an apartment before her marriage since in this case, the apartment would remain to her if she divorced. “But since we decided to get married, we are not going to get divorced in a couple of years,” Sabine is sure.

The mortgage loan is issued for a period close to the maximum – 25 years. “We specifically decided to stretch it to reduce the monthly payment. Therefore, payment of a mortgage loan and a repair loan turned out to be 200 dollars per month. And although today we can afford to pay more, we would like that if in five or 10 years one of us is left without work, we could pay back a loan from one salary for some time. Parents also said that in which case they could give us 200 dollars per month. Because life is unpredictable. And in Latvia we had experience with the crisis, ”says Sabine.

It would have been more expensive to rent

It would have been more expensive to rent

Sabine notes that it would be difficult to find an apartment for rent for such an amount because, for housing that would meet their requirements, the owners ask from 300 to 400 dollars a month. The search for an apartment was complicated by the fact that young people have a dog, and landlords are reluctant to rent their apartments to families with animals. Before that, the young family was lucky, as they rented a small studio apartment with an area of ​​34 square meters from their mother’s friend for a completely symbolic amount of 140 dollars per month. But recently, the landlady started talking about selling her apartment, so the Good Finance support program for young professionals appeared just in time.

“The idea of ​​buying our own apartment with us has been ripe for two years, but the main problem was the down payment. For new projects, it is 15%, and for old ones – 20% of the cost of the apartment.

It is impossible to accumulate it in a short time

It is impossible to accumulate it in a short time

It is very difficult to immediately find such an amount, and it is impossible to accumulate it in a short time. We did not want to wait long, continuing to rent housing, we wanted to have our own. The decision of our landlady to sell her apartment was a serious kick, prompting us to search for our housing. I remember that my husband and I had already discussed – it’s unfair that Good Finance provides support only to families with children. Why does the state not support those who want to start a family, but have no children yet? ”Sabine said. According to the girl, she and her husband dream of children, but want them to have a place where to raise them.

Sabine found out that Good Finance was preparing a support program for young specialists last year, and she and her husband were very happy about this. “Despite the fact that the conditions are not as favorable as for young families since you have to pay a commission for the guarantee the program greatly facilitates the purchase of housing. And overall it’s profitable, ”says Sabine.

And although both spouses have been Good Finance clients since their school years, they sent applications to several banks to compare conditions. “I contacted several banks and even received offers from them, but after talking with the bank manager I realized that no one would offer me more favorable conditions than Good Finance,” Sabine said. In addition, she did not want to change her habits of using the bank, give up convenient online banking, issue another card and account. “I’m used to my bank and I know that I can call and resolve issues of interest to me at any time,” Sabine says about cooperation with Good Finance.

The hardest part is finding an apartment

The hardest part is finding an apartment

According to Sabine, nothing special was needed to get a loan: all that was needed was to collect a few documents and send them to the bank manager, who did the rest. In addition, the process went very fast, since Good Finance made a decision within two or three days. “At Good Finance, we had a very good manager who clarified all the questions we were interested in. Personally, I was only at one consultation at the very beginning, and everything else happened electronically. Modern technology makes life easier. We all work, and it is very difficult to break out at the height of the working day. It took us only 10 minutes to sign the documents. It was more difficult to make a decision, as the apartments are very different. And often in the pictures, you see one thing, but in life, it turns out to be completely different. But in this apartment we felt that we want to stay here and call this place home, ”says Sabine.

The purchased apartment needed repairs, in addition, some new owners wanted to change some things. For example, in the bathroom, there was a huge Jacuzzi, but Sabine and her husband wanted a neat bathroom, which would fit both a shower and a washing machine, so after some thought, it was decided to take a consumer loan for repairs. “After weighing everything, we decided to do everything now and immediately live in the apartment we like,” says Sabine.

The price of the apartment purchased by the spouses was 44,600 dollars. Without a guarantee, Good Finance Sabine and Andris would have to pay 20% or 8920 dollars plus assessment, bank commission and registration fees for the apartment in the Land Register, totaling 11 500 dollars. Part of this amount was accumulated among young people, and parents helped.

Total costs:

  • One-bedroom apartment with all amenities in Riga, on the street. Maskavas, near the South Bridge, with a total area of ​​43 square meters. m
  • Apartment price: 44 600 dollars
  • Amount of a loan provided by the bank (for the purchase and repair of an apartment): 47,277 dollars
  • Additional consumer loan for apartment renovation: 7677 dollars
  • Good Finance Guarantee Amount: 5,673.24 dollar
  • First payment to be paid by yourself: 8920 dollars
  • Commission for the guarantee provided by Good Finance: 4.8%; the commission is paid within 10 years, the payment of the amount is distributed in equal parts for the entire period
  • Fee for registering an apartment in the Land Register: 2% of the purchase amount, clerical and state fees: approximately 972 dollars
  • Monthly payment: 204 dollar