Purchasing your first home can be an exciting time, but there are also many important factors to consider before researching options and applying for a mortgage and making the purchase final.
Firstly, and it may seem obvious, you should consider whether you can afford the home you plan on buying. A mortgage is just like any other loan and requires repayments to be made on time and in full.
Failure to make repayments on time can lead to serious problems, so ensuring you can afford the mortgage payments is vital. Even if you feel you are able to afford them now, consider what changes the future may bring and make sure you make a responsible decision.
Another factor to consider regarding affordability is whether you are able to purchase the house outright. This eliminates the need to take out a mortgage and allows you to buy a home debt free.
While this isn’t an option for many people, those who are able may find it to be easier, quicker and better to purchase outright instead of taking out a mortgage.
Once you have made a decision on whether or not you can afford the amount you wish to borrow, you also need to factor in extra fees and costs. This includes stamp duty, closing fees, deposits and various other fees.
Ensure you have enough saved up to cover these costs before pursuing a mortgage loan as failing to pay these can result in you losing out on the property or delaying the process.
Make sure you have spoken to your mortgage broker about all the mortgage options available to you before making a choice. There will be many kinds of mortgages to choose from and a broker will be able to point you in the direction of what is most suitable.
