Top Questions to Ask Yourself Before You Buy a Home

Created at 2017-12-05

Being a homeowner is no easy task, but is also one of the most rewarding experiences in life. But before buying, you need to make sure that you’re financially ready for the commitment because that’s precisely what owning a home a s, with this in mind, below are some vital questions you need to answer before you dream of furnishing that Lancaster New City Cavite house for sale in Cavite you’ve been eyeing:

Can You Comfortably Afford a Mortgage?

Take a look at your monthly budget for your current expenses and add your potential monthly mortgage payment. Can you honestly say that you could afford it? Lenders suggest that your expenses must only be around 28% of your gross income every month. So for instance, if you earn P 65,000 monthly, your allotted monthly mortgage payment shouldn’t exceed P 18,200.

Do you have a Down Payment Saved Up?

Since lenders here in the Philippines typically offer 80% of the home’s purchase price when they approve a mortgage, you would need to have 20% of down payment at the least. If you could afford this, or more, you could take out a smaller loan and pay less interest over the long term. Before speaking with potential lenders, estimate how much down payment you could afford.

What’s the Status of Your Debts?

Are your debts, such as credit card debt and the like under control? You don’t necessarily have to be 100% debt-free, but you need to have a solid repayment plan for your outstanding debts and avoid taking on new debts. Managing your debt as good as you could, would also benefit your credit rating, which in turn would communicate to potential lenders that you’re creditworthy and could be trusted with a mortgage.

Are You Honestly Ready for Home-ownership Expenses?

Keep in mind that home-ownership expenses include all sorts of things. You need to take into account furnishing, moving fees, association dues if any, home repairs, maintenance and emergency expenses, among others. Remember, you are in this venture for the long haul, so you need to make sure that your financial are in it for the long haul as well.

Put simply; you need to take these into careful consideration. Answer these questions as truthfully as you can, consider all your financing options, and make sure that the home you’re buying would all be worth it.