Buying a house is part of every individual’s dream. Most of us envision starting a family in our dream house. Being more mature, we now realize that getting a mortgage is the best way to afford that dream (aside from cash payment).
A mortgage is a type of contract. It is between you and the loaning institution. Putting it simply, you loan money from them to pay for the cost of the house. Payments are made in installments until such time you finish paying off your debt, and the house is truly yours.
Buying a house may be one of the most important financial decisions you will be making in your whole life. Getting a mortgage is no walk in the park and a lot could go wrong. This is why you must make that decision correctly.
Here are some things you should put in mind when thinking about buying your own house through mortgage:
1) Know what price range you are comfortable with. Look into your funds and ask the following questions:
- Can I afford it?
- Can Istill afford it for the next 10 or 20 years, up until the loan is paid?
- Do I have enough left from my salary to regularly pay on time?
- Can I afford the other expenses that come with the home? Like utility bills, maintenance costs and others.
2) Do your research. The internet and the newspaper are good places to start your search. Look for good offers and lending institutions that have promos or have a good track record. Take advantage of the internet and look for real estate up for grabs near the area you want to reside. Also, be wary of scammers or posers; verify the information before you make any transaction to avoid frustrating situations.
3) Know what you want. Identify what it is specifically you are looking for. This will considerably lessen the effort you will make to find what suits you. A great way to help you with this is to imagine, clearly picture out in your mind what you are looking for. Another way is to clip pictures from magazines of houses that get your fancy. In short, be specific, state what your heart wants and study the choices available.
4) Look into the details of the mortgage. Read between the lines. Know by heart all the terms mentioned in the contract. If you have questions, it is always best to go and ask your loan officer; after all it is your loan. Read the terms and conditions and all the important information bound by the contract. If the answers of the loan officer do not suffice, call a real estate lawyer for the real score.
Getting a house is not a small matter. It is something that will greatly affect your life. Always remember this when getting a mortgage. Ask questions whenever necessary and read the contract. It never hurts to be careful, especially with major decisions such as this.
Irina Carter writes for Swiftmoney Short Term Loans website. She contributes towards personal finance, frugal living, taxes, loans and finance news.