How does the financing simulation work and why is it important?

Simulating financing before making the proposal has been very useful for the consumer to check how the desired financing installments will look.

With this, it is possible to prepare effectively to get the dreamed new car or home, for example.

In this article we have separated everything you need to know about financing simulation, see how important it is to carry out this procedure.

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What is a financing simulator?

The financing simulator is a method used that has the ability to predict installments and interest amounts.

Generally, the simulator is used before credit analysis.

Therefore, it is possible to predict the amount to be paid before making the proposal, based on the proposed standard conditions, and not on the specificities of each case. 

How to do the simulation?

It is necessary to have all the personal data and the desired good, whether property, vehicle, etc., in hand to be able to simulate the financing.

With this information, the simulators are able to capture each financing information to make an analysis that is more similar to reality.

Currently, there are several ways to carry out a simulation over the internet, and most banks in Brazil offer this type of tool through their website.

Although you can use online resources to carry out the financing simulation, taking out credit can be done in person, this will depend on whether the institution offers a way to apply online or not.

Why simulate?

When calculating financing, it is very important to search for different simulators.

This way, you can have more practicality without realizing it, you can analyze how credit works in each of the financial institutions.

One of the reasons to simulate is that you can find it easier to find credit that fits your budget.

Therefore, you can analyze the interest rates, the CET, and even the best way to make the payment. 

What is needed to simulate

Before simulating any financing, you need to know some data in advance for the simulation to work. Thus, the essential factors include:

• Type of financing: simulating financing a property or vehicle, has its differences, especially because the values of each asset are different and so are the payment of fees. For this reason, I need to identify what type of financing you want.
• Financing time: another thing here that has an impact on the simulation is how long the financing will last. The longer the period, the smaller the installments will be, however the accumulated value will be greater. A shorter financing period means more expensive installments, however, the overall value will be cheaper.
• Monthly family income: as the value of the financing installments cannot compromise more than 30% of your family income, this is also very important information, as it can affect not only you but also everyone else. In other words, you must establish a limit on your family income in relation to the amount you can pay monthly. Therefore, you cannot choose a 24-month payment and will have to opt for one that offers a higher level of installments, such as 60 installments, for example.

Methods to simulate

There are several different types of financing offered in the financial market, and consequently, there are also many online simulation platforms.

You will find below some platforms that offer this feature:

Citizen Calculator

The Citizen Calculator was created by the Central Bank and is a platform for calculating financing, which makes it easier for consumers. This platform works very easily.

You know how to inform here: monthly interest rate, number of months, installment amount and the amount financed.

However, it is worth noting that through this platform it is only possible to calculate fixed financing installments. 

Caixa Housing Simulator

As the name suggests, this is an exclusive tool for simulating property financing.

As it is linked to Caixa Federal, this platform can only be used to simulate financing made by Caixa.

To carry out the simulation is very simple, you just need to enter the information requested on the form.

It is important to remember that there are some questions about the location of the desired property, personal data and even whether the interested party already owns another residential property in the same city.

Rent or Finance Simulator

You can access a good simulator offered by the largest finance channel in the world, led by digital influencer Nathalia Arcuri. There it is possible to simulate financing.

What should I analyze in the simulation 

It is worth mentioning that it is possible that financing rates may change when carrying out it, even with a simulation. As the name suggests, the simulator only suggests something that should happen.

During negotiations with the finance company, they will present you with the final conditions.

It is necessary to analyze three main aspects when contracting the financing you are excited about.

The first thing that should be analyzed is the payment term.

It is very important that this deadline has a good amount of time to pay the amounts without affecting your budget.

The second, something very important, the value of the installments.

Ideally, these installments should not put a strain on your household’s finances. Therefore, analyze how much you will be able to pay monthly with the amount that fits in your pocket.

Third, be careful with the CET value of the financing.

Many people only take interest into consideration when acquiring any type of credit.

However, the interest rate is not the only thing charged by the bank.

The CET will define the total cost, the amount you will pay for the financing.

These are the three main aspects that should receive more attention.

However, it is also very important to take other financing data into consideration.