When we decide to move into bigger, newer or better real estate , everything usually seems very fast until the borrowing process begins. Here, the process usually slows down a bit. However, this is not legal as we can do a great deal against it. This article is about keeping up the momentum and getting borrowing smoothly and then moving in! ?
Let’s think ahead!
The success and speed of borrowing usually depends on the material. So when we think financially , we think we can win a lot. Specifically, we need to think about:
- how much self-reliance is needed
- how much credit we can borrow
- what kind of contract we have with the loan
- credit is not free, there are costs
Let’s go through these points quickly!
How much self-reliance is needed?
We won’t be able to say a fixed number for this, though it depends on just three things . The real estate and the amount of credit we want to borrow, and of course the amount of our justifiable income.
We can say with certainty that we must have at least 20% of the purchase price. Of course, the more power we can pack, the better off we are. We’ll get a better credit and have a lower monthly repayment.
How much credit can we borrow?
This is where we can gain the greatest benefit of ourselves by responding to the opportunity ahead of us in a timely manner.
We can gain a lot of time with it, release a lot of stress from ourselves, and use it a little. What is this? Credit pre-qualification
And the point is very simple. Long before we found our property to buy. As soon as the idea of buying a home flashes, go to the bank and ask for a credit pre-qualification.
Simplifying the borrowing procedure (income statement, employer information…) just without the real estate to be acquired. By doing so, we gain that we will know exactly our financial limits. Specifically, the monthly repayments that the bank allows us to make, the amount of credit we can borrow. This will immediately give you a recommendation as to the maximum value of the property you can buy.
What’s more, banks hold this rating for up to 6 months, so you don’t have to retake it when you “go live”, and you gain time as it only has to match your real estate.
What kind of contract do we have for the loan?
There is only one way we can improve good credit, with savings. An ideal solution for us would be a government-sponsored home savings fund or a securities account with tax benefits as an investment. In that case, at the same time, our debt (repayment) decreases and our capital (savings) increases. It is also worth planning our monthly releases accordingly.
The loan is not free, there are costs
Do not rock yourself in vain daydream, it will cost money to borrow. Let’s stay on home loans . When we enter into a sales contract, the cost is borne by our customers. You need to ask for the title deed as well as this will also burden us with the notary fee and the loan payment fee as well. Don’t forget to calculate this in your budget.
If we follow this, there is no obstacle
Summarizing the article, there is no need for devil, just enough to think ahead . Do whatever you can, do it early on, and do not slow down the process of borrowing a home. If you liked what we have described and are interested in similar practical solutions, feel free to contact us! We do not keep such ideas in ourselves. ?