Are You Ready to Buy a House?
Buying a house is never easy. With all the options and factors to consider, investing in your new home should also involve time to dig into details and compare every information that you gather.
Here are the questions you should ask yourself:
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Do I have the budget?
Money is, of course, the most important thing you should have when you really want to buy a house. You should have the resources at least for your down payment which usually costs at least 10% of the total cost of the property. Acquiring a new place comes with a lot of expenses and fees so you should ensure good money-management skills from this day on.
Will I be qualified for a housing loan?
The primary requirement is to prove that you have a really consistent cash flow to cover your monthly payments plus other expenses. If you’re going to avail a housing loan, consider these factors:
- Down payment: The downpayment usually comes with the reservation fee. It is the biggest chunk of your payment because it is usually a one-time payment. It can be a good deal too, because if you’re going to pay for a bigger downpayment, the monthly amortization will be lower than if you pay for fewer down payments. Consider your income when it comes to balancing which is a better option for you.
- Monthly amortization: After paying the downpayment, you will pay the monthly amortization that depends upon the down payment and the length of your payment terms. If you choose to pay the monthly amortization for 15 years, it will cost you less monthly amortization but will incur bigger interest. If you pay it for just 5 years, it will incur less interest but bigger monthly cost. Make sure that your monthly income and spending should adjust depending on the payment of your future house.
- House expenses: If you acquire a house, future expenses like your furniture, appliances, and other things relevant to your new home will incur a big chunk in your monthly spending. Expect huge expenses when you plan to buy a house. So, are you ready?
Is my chosen locality fit for my lifestyle?
If you’re building or buying a house, choose a locality that is fit for your lifestyle. Is it near the places you often go to? If you own a car, is the road accessible? If you don’t, is the place accessible for public transport? Is the hospital or marketplace just nearby? It is also important to ensure the quality of your neighborhood, the ambiance and other factors to ensure a complete and healthy family life.
Buying a house is definitely a dream for every individual. There are relief, convenience, and pride. But you have to take into consideration a lot of things so your hard-earned money won’t be put to waste.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.