Buying a home is an exciting process – it’s a process that allows you to dream – but it’s also a process that can bring a lot of stress and raise a lot of questions. A mortgage deal is a very big deal indeed – after all, it’s probably the longest financial commitment you can possibly make. For a first-time buyer, it can really be very confusing.
The fact that there are many kinds of mortgages out there on the market will not make it much easier; each mortgage lender has different advantages and different conditions to offer. Are you confused when it comes to the interest rates, the monthly payments, and the various terms and conditions? Not to worry; here’s your essential guide as a first-time home buyer.
How much can I spend a month?
Anyone who wishes to make a long-term commitment regarding monthly payments needs to take a sober look at their finances and decide how much is really feasible – and this goes double when it comes to a long-term commitment such as a mortgage. How much can you reasonably and realistically set aside every month without suffering too much of the grunt and still leading a lifestyle that fits you?
Your future prospects
Your future prospects are important. Do you think there are raises in salary or business income in the future? Do you feel things might go easier after a few years if you commit to a lower amount now? Again, nobody can predict the future, so be realistic.
Your future expenses
Do you plan to have children? Do you need a new car? Will you be making needed renovations at the building you bought? Will your home need remodeling or new furniture? Large future expenses should be kept in mind.
It’ll cost more than you realise
There will be expenses you incur which are not predictable yet. For example, you’ll have to reserve money for surveying, taxation stamps, legal fees, and so on. Do the research.
Find the right place
Things sometimes don’t work out, so make sure you find a home that is sure to rise in value and which can be placed on the market reasonably quick, if need be. Think of your home as an investment.
Here’s one more important piece of advice – especially for first-time buyers and applicants: beware of financial advisers or agents who are trying to sell you a mortgage; they may not have your best interests in mind (especially not if they work on commission or are directly or indirectly related to the lending institutions). It’s important, however, that you seek professional mortgage advice, but choose your advisor carefully and make sure you read all the fine print. It’s your future and your dreams that are at stake, after all.