8 Questions to Ask Yourself Before Getting a Mortgage Bond

Overview

Buying your first house will probably be one of the most memorable experiences in your life time. Before you take the plunge and do a bong application, here are some items you need to consider.

1. How long do you plan to live here?
   The longer you live in a home, the more likely it is that the financial investment of buying a property will pay off. As to live in the same space for a few years, buying is often more cost effective.
2. Will you qualify for a good deal on a mortgage?
   You’ll need a decent income and good credit to qualify for the lowest rates and best terms on mortgage loans. It’s sometimes possible to get a mortgage if you’ve bad credit, but you’ll pay a lot more over time.
3. What other costs will you be responsible for as a homeowner?
   When comparing costs of buying a home through a loan, make sure you’re including home-owning costs beyond mortgage principal and interest. Things like homeowner’s insurance, rates and property taxes.
4. Are you comfortable with the risks of owning a home?
   It’s a popular argument that owning is smarter because you’re investing in a home. But as with any investment, owning a home has its own inherent risks. There are no guarantees you’ll get a good return on your investment. And even in a strong housing market, there are the everyday risks of unemployment or other financial hardships.
5. Is your income stable and sufficient to support a bond?
   As buying the home of your dreams is a big, ongoing financial commitment.
6. What kind of loan do you need?
   Every mortgage is not created equal. There are many different loans out there to meet the needs of borrowers in a number of different situations. From loans geared toward investors, or self-employed borrowers, a mortgage broker can help you figure out which one is right for you.
7. Can you afford to buy the home?
   As buying in the wrong area can mean a relatively cheap property but in the long run would it be good place to raise kids and with expensive property it can mean. Your bank may balk at financing the home, and you probably won’t see your home appreciate in value very much.
8. What kind of deposit can I put down?
   Not to mention the other costs associated with a home purchase such as transfer fees, attorney fees and bond costs.

For more tips on acquiring your first home loan, check out this article.