Finances & Money

Questions to Ask yourself before Buying a House

Buying a house is one major milestone in life. Reaching this stage is indeed one of the proudest and most fulfilling feelings in the world. Since it is too big of a deal, it is important to make sure that everything is fine. You should be 100 percent ready to take this step. It is not enough that you want to buy a house. Of course, everyone wants to have a house they can call their own but not everyone is capable and ready to make this dream into a reality. So the question now is, are you ready?

To help you decide if now is the right time to buy your own house, here are some questions that you should ask yourself:

 

  • Do you have money for the down payment –first question to ask yourself is if you have money for the down payment. Yes, you’ll be assisted by mortgage to buy a house but you should first secure the down payment. Therefore, you should have money to pay for at least 20 percent of the total cost of the house that you are planning to buy.
  • Do you have a stable job or source of income –okay, you have the money for the down payment but do you have the means to pay for the loan? Do you have a stable job that will help you pay your mortgage? It is best if you’ve been in the company or your job for at least two years. This gives you security that you can depend on your job for a long time. It is a nightmare to lose a job in the middle of paying your mortgage. So before you apply for a loan, make sure that your source of income is stable. It would be nice if you have extra source of income too like a small business to act as your fall back in case something happens.
  • What type of loan is suitable for you –you should also decide what type of loan to avail. You can choose the most popular among first time borrower which is the variable home loan wherein best fixed home loan rates start low depending on the current interest rates and can vary each month. You can also go for fixed rate home loan wherein interest rates are fixed. This means that you have exact figure to pay every month. To choose which type of loan is suitable for you, it is best to weigh your options.
  • Do you have existing loan that you are paying –you should also ask yourself if you are currently paying a loan like car loan, personal loan or other debts. In case you are, then you might want to set aside first your plan of buying a house. It would be very difficult to have multiple loans that you pay every month. It is best to pay everything first before you decide to take another loan.

Answering those questions will help you answer the ultimate question of whether you are ready to buy a house or not. Timing is very important so do not rush your decision just because you are feeling pressured to buy your own house just like your other family members, colleagues or friends. If it is not the right time, then do not force it. You might get into bigger trouble if you insist on pushing this decision.

So if you decided to buy a house, make sure that everything Is right. That way, you will be able to enjoy and savour this wonderful phase in your life.

 

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Susan Paige

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