Buying a home is often a big financial decision. It’s a major commitment that requires careful planning and thoughtful budgeting.
When you’re keen on buying a new home you need to do proper research and make sure that you have all the facts.
While some people can afford to buy their homes using cash only, the reality is that for most people, this isn’t an option.
For most people, buying a new home often means that they have to get finance from a bank or another financial institution. This process may be confusing and seemingly complicated if you don’t know how it works and what to look out for.
You need to make sure that you can afford to repay a home loan of you apply for one. You need to make sure that you can service your loan, along with any other expenses that form part of the loan.
Check your credit record. Find out what your credit record is so that you know how much finance you are likely to qualify for.
Manage your credit record. You should make sure that you don’t apply for additional credit during your application process. You should also make sure that you pay your existing debts on time and in full every month.
Get pre-qualified for a home loan. It saves you time as you know exactly what price range you need to be shopping in and what deposit you will need to have available.
Consider your options. You can apply directly or you can use a mortgage originator to apply on your behalf.
Don’t buy a home just because everyone’s doing it. When buying a new home, you need to determine how you will afford your home.
Have your financial documents prepared in advance, so you can give exact answers during the application process.