Are you ready to buy a house? Money matters are crazy matters. You cannot settle them sitting down, especially if they involve huge amounts.
Take, for example, getting a mortgage. If you think buying a house can be decided in a snap, think again.
There are countless considerations to ensure that you are ready and would not suffer from a financial crisis if you do sign up on a realty offer.
Are you Ready to Buy a House?
Many people make the mistake of taking the big leap from renting to buying, thinking it is the best way to go for the benefit of their finances, including how to save for a house deposit. They think they are ready, even if they are not.
Here’s how you can tell you could take out a mortgage and pay it back, so you can enjoy the comfort of your own home without worrying you might lose it again along the way.
You have a stable money source
Ask any mortgage advisor Kent, and they will tell you home loan applications were judged the same way, based on your income, first and foremost. But the figures don’t tell it all.
Your income source must be stable enough to last you many months, staying put or, better yet, advancing.
If you are in an unstable company or industry, or your position presents no promise of promotion, it is probably not the best time to tinker with the idea of a mortgage.
You can pay the monthly dues
Image: Fisher & Paykel
A mortgage is a responsibility. If you could not keep up making monthly payments on time, there is no sense in considering it at all. The size of your income is not the only factor that would tell if you can afford mortgage payments. It may also involve your spending habits, your credits, and how well you handle your finances.
Your credit line is clear
Being debt-free is essential to making the mortgage more manageable. But if you still have some credits under your name, don’t worry because it does not completely void your eligibility to take out a mortgage. If your debt-to-income ratio is low enough and your credit balances are controlled, you could still have a good chance of successfully buying a home.
You have a solid emergency fund and savings
You need to have sufficient backup funds to serve as your security blanket in case the tides turn against your favour along the way. Your emergency fund and savings will help cover up for you and ensure you can keep up with your obligations and not default on your payment.
You found a great deal
Unfortunately, a good mortgage deal that will meet all your requirements is hard to come by. So when it arrives, you should never let it pass, especially if it comes at a time when your finances are properly aligned.
Everybody dreams of owning a house, but not everyone has the capacity and ability to buy one. It’s one of the largest debts you may have to pay in this lifetime, so you better look for the signs that you are good to go ahead.
PIN FOR LATER: