Financial Tips for The Home Buying Process

To find a suitable home is not that easy and it requires great effort and time on your part. You can still succeed in getting your dream house provided you are careful. There are some basic things you have to acquaint yourself with before you can make your home buying dreams come true.

The Financial Side

Before purchasing a house, think about your finances in detail for future years and how you are going to repay the loan. The finance aspect of purchasing a home is important. Calculate your total expenses to understand how much you can afford. Weigh in your income and expenditures for more clarity. Find out your total monthly income after the income tax has been taken care of. Add to this your spouse’s income and the income you might get post-purchase of the house. Then take a look at your total expenditures. This does not need to include your current rent if you are planning to go and live in the new house.

Then, subtract the expenses from the income to arrive at the your income. Also, make provisions for an increase in salary. Also deliberate on whether you are planning on having children as this would require time and money. Understand what your borrowing capacity is. With all of this information on hand, you can now know your repayment ability and hence, can borrow to that extent. The borrowing limits differ from institution to institution, therefore, the use of calculators will help you to determine the exact amount of mortgage money.

Know Your Mortgage Amount and Interest Rates

To arrive at the cost of the house and to get a conservative estimate of purchasing a house, you can use a home loan calculator to know your mortgage repayment timeline depending on the loan period and the interest rate. Always keep some a sum of money which you might have to pay before the loan is approved. Next, find out about the most competitive rate which will benefit you financially – both in terms of interest and the loan limit. The type of loan the buyers need will depend upon the individual. If you want the exact amount, then go for a fixed loan but if you feel the interest rates may vary in the future, then it is better to consider a variable rate of interest.

Once this is sorted, then you may have to get your income checked out, latest tax returns, and your savings history and any other documents that may be required by the lender to process your loans.

To get the best deals, survey the market for the most economical lender. Since it is a competitive market, don’t hesitate to bargain. Being able to submit all your documents immediately to your lender will facilitate the easy process of sanctioning the mortgage loan and thereby, get the amount approved and released.

It is also advisable to get the home inspected before you purchase the house to avoid complications or added costs down the road. Inspections may relate to the buildings, pest, electrical, and land survey. The matter comes to a close where you make a deal by exchanging your cheque with the vendor’s title of property ownership. Your lawyer will help you out in this process.

Let Amina Sai help you find your dream home! Get in touch today and find the home that’s right for you and your family.