Buying a house is not a walk in the park. You spend hours poring over property listings, take weeks consulting with your broker, and worry about your application for a mortgage. All of these are time consuming and inherently frustrating, especially when you don’t get a positive feedback after weeks of waiting.
The most significant of all these is applying for a mortgage. There are certain pitfalls that you must avoid, such as:
1. Ignoring your credit. As must as you want to hasten the buying process, check your credit first to assess if bankers will see you as a reliable borrower. If your credit score is relatively low, you have time to recover by paying your bills on time and paying more than just the minimum for your loans.
2. Applying for a new credit card. While your mortgage application is still being processed, try to steer clear of getting a new credit card. Lenders will think that you’re digging yourself too deeply into debts, which is never a good thing.
3. Failing to consider your income. You want to buy a 2-storey villa with 5 bedrooms and 3 toilets and baths. But the question is, can you afford it? Make a detailed inventory of your monthly income first, including all of your assets, funds, salary, etc. Then, factor in your monthly expenses, i.e. groceries, utilities, savings, emergencies. Only then should you evaluate your capacity to meet monthly mortgage payments.
4. Like we said, buying a house isn’t easy. But when you know what to avoid and know who to trust, you just might survive unscathed.
Want more mortgage tips, visit www.rebuildingyourfuture.com
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