Do you want to own a house? Is this the right time for you to get a mortage and own property?
The thing that matters the most while purchasing a property is to know that you have enough economical resources that later it does not become a liability for you.
So keep reading this guide on How to Know if you are ready For Mortage Loan
Note that it is not necessary to fullfil all these criteria’s. these are just some important factors to check before making such a big decision.
Table of Contents
Good Financial Condition
No matter how much emotionally you want to buy a house you wont even come close to buying a house if you can afford a mortage.
Generally you need to deposit 5% of the actual cost of the property.
Well you don’t have to Pressure Rise yourself with all this work.
Trussele’s Mortage In Principle can be very helpful for you to manage all this small but necessary work.
Firstly they will do a credit check to find out how much exactly you can borrow before checking your eligibility with different mortage lenders for a accurate calculation of the mortage rate
But keep in mind before you approach Trussle or any other Mortage Broker, it is quite thought full to do a general audit of your financial condition.
Below are some of the things you’ll be asked when you get in touch with a Mortage Lender.
The first thing a mortage lender will ask for your income proof as a general rule, you should assume that you can afford a mortage as its up to 2.5x more than your yearly salary.
If you are a long term employer in your current job will show lenders that you are trustworthy and your income source is constant.
The second thing a mortage lender want to see is what your monthly
outgoings are. Things Like Insurances and Bills are included in it,
and unpaid loans or suspicious transaction will be examined too.
If you have a lot of Liabilities under your name, it’s more likely that you’ll get rejected for mortage . on the other hand if you have financially good position then you’re ready for your mortage.
A Five Year plan
If you are going to buy a house then you’re committed to live in it for the for seeable future.
Most of the mortages last for the average of 30 years, but it is a must to stay in your property for at least 5 years minimum. If you are planning or have to move across the country then there is no need to become a homeowner right now as you are not going to live in it.
“Your Very Own Landlord”
You have to cover for any faults that occur within the property rented by you.
Becoming a Home Owner means that you have to be prepared to take care of these little things on your own and you must ask yourself if you are ready for this mentally.
If you have a water leakage at your bathroom are you prepared to contact Plumber
or fix it by yourself. It might seem extreme for you But it’s better to be prepared than to be sorry.
If you find the idea of dealing with all these house related issues extreme right now , it might be best for you to stick to a rented house for the time being.
However there are dozens of decisions of your life that you must consider before making a decision.
From This guide you might have gained a better understanding of your current situation or if you are ready for a mortage financially and emotionally.