Is it the right time to obtain a Residential Mortgage?
Timing is everything and regardless to what you see on the news or read about the housing market, deciding when to purchase a home is a personal decision that is based on many factors. Before purchasing a home, it’s important that you are prepared and have thoroughly considered all of your options before contacting a mortgage broker. Some of these options include:
- How long do you plan on being in your home?
- Which lender will you select?
- Which loan is best for you?
- How much home can you afford?
- What is the right amount of money to save for your down payment and other fees?
But even before you make these choices, you should first ask yourself, is now the right time for me to obtain a residential mortgage? Purchasing a home is such an emotional process that it often leads many people to make at least a few concessions that they shouldn’t, which is why truthfully answering the following questions can help you truly determine if now is the right time for home ownership for you.
Can you afford it? – No matter how sweet the latest mortgage deals may seem, the bottom line is, can you afford it? No one knows your budget better than you and even if you receive the best mortgage interest rate available in years, you may still not be in a position right now to afford a residential mortgage.
How much money do you have saved? – Have you saved money towards your residential mortgage? Although you may be able to afford the monthly mortgage payments, purchasing a home costs more than just the amount of the loan you take out. Closing costs, fees, commissions, and other costs have to also be included in your home loan budget.
Do you have a plan? – Purchasing a home is a commitment, whether you plan on living in your home for 5 years or 25 years, you should have a plan that outlines how you plan to continue to pay for your home if you are injured or unemployed. You should also be prepared to deal with maintenance and repairs that will be required through the years.
Will you be able to get approved? – Wanting a home is not enough to actually own one. If you applied for a home, would you get it? Is your credit in order? Do have enough money for a down payment? Can you demonstrate stable employment and income? You must be able to prove to lenders that you are able to handle the responsibilities of a residential mortgage.
By having a plan, incorporating hard work and staying up-to-date on the latest financial news, you too can make your home ownership dreams a reality.