The decision to get a mortgage should be approached reasonably and responsibly. Compliance with the data will make it possible that the loan practically does not affect your lifestyle, and new housing brings only joy.
1. Keep your lifestyle acceptable
Mortgages will not be a yoke for your family if mortgage payments do not become an important part of your budget. That is, you will be able to repay the loan on a monthly basis and this will not radically change your lifestyle and will not harm the interests of family members.
2. Predict your earnings
When calculating a mortgage loan for 15–20 years, think about how many years you can repay it. Your needs will change tremendously over the course of 20 years, and most likely your expenses will increase. Children, health problems and similar things may appear. Predict your income for at least 7-10 years and do not take into account bonuses or unfixed dividends. They may not be, but there will be payments.
3. Have savings for the year of payments in advance
Yes, at least for a year. Because life is unpredictable. Maternity leave, dismissals, job cuts, serious illnesses, and injuries. You must be confident in your future, and not be in fear of change. A strategic financial reserve will help you sit comfortably with your child or survive difficult times. Or have any assets that you can quickly sell.
4. Choose the right place
Carefully choose the area where you are buying an apartment. Especially if this is not an investment purchase and you will live in it, go to work from there, look for a kindergarten and a school nearby. Never choose an area according to the principle of “what was enough money for”. You should be comfortable there! It is verified that if you evaluate the time to travel to work and back home as tolerable, then very soon it will become intolerant. And you have already bought the apartment, made repairs and new solutions often do not have enough money and moral strength. Dissatisfaction will accumulate, and the existing mortgage loan will be to blame.
5. Calculate the apartment area
You take a mortgage for many years, and if you are a young family, then, probably, children will appear soon. Think about comfortable accommodation for all family members in advance. Because buying a larger apartment in 2-3 years, most likely, will cost a considerable amount of money. If you did not make early payments, you will find that you have been paying interest all this time and owe the bank exactly the amount you started with. And if the cost of your apartment has decreased, then you will have to pay the bank more. As a result, often a rather big family lives in a small apartment and blames the heavy mortgage on everything.
6. Have a backup plan
In case everything goes wrong. If a well-built plan is not so reliable, you must understand how you will act and where to live.
Life is unpredictable. But these simple rules will provide you a calm life and a good credit history.
Picture Credit: Unsplash