How to Know What you Can Afford when Buying Real Estate

If you are considering buying a home the first thing that comes to mind is affordability. How do you know what you can afford?

Wouldn’t it be great if you could just write a cheque for the home of your dreams and to know that it is taken care of? Almost like buying a new set of golf clubs or a leather coat. Just write out a cheque. But unfortunately, very, very few (if any) people in today’s life can afford buying a home like this. In the real world, the way to go is a mortgage. Taking out a mortgage is a very big commitment and the following questions should be answered before making any decisions.

Firstly, you should ask yourself what your ability is to make a down payment. If a down payment is required, you should know how to go about getting the money and how much you will be able to give toward a down payment.

Secondly, ask yourself what your ability is to make monthly payments. Monthly payments on your mortgage are one of your most important monthly payments you will ever make. Not only can you lose your home if you don’t make these payments, but you can be blacklisted and never be approved for a home loan again.

Your financial future should be taken into consideration as well. You should know the stability of your earning power before making this kind of commitment. If you are not sure if you will have a job in the next six months because your company is retrenching left right and centre, you should probably not make such a huge financial commitment at this stage. But even if you are sure you will be able to make the payments every month, on time, you should still have a contingency plan. This is necessary for a worst-case scenario. Anything can happen and you might need the money for something else, so when taking out a home loan, make provision for the unforeseen and make sure that if something should happen that makes it impossible for you to make the monthly payment, you have some savings to cover your monthly payment.

Chances are slim that you will need this, but like insurance and medical aid, if you don’t have it, something will happen and if you do have it, you will hardly ever need it! Better safe than sorry.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Shopping For The Best Home Loan

Finding the perfect home is a task, but shopping for the best home loan can be even more tedious.  With so many lenders (Banks)  promising low rates, closing costs and little or no down payment requirements, it’s often difficult to know which way to turn.  Luckily, there are several steps that you can take to find the right lender for your individual needs through Mortgage Plus – www.mortgagepluscc.co.za

Assess Your Situation

Do you know what your credit score is?  If not, you should.  Most lenders rely on this triple digit number to determine both your creditworthiness and interest rates.  If you have excellent credit, you can probably work with almost any lender.  If you have severe blemishes in your financial past, however, finding the right lender may require a little more footwork.

How much money do you have for a down payment?  If you are on a budget, you will need to choose a lender that can help to get you into a home with a minimal down payment.  Knowing where you stand will give you a good idea as to which lender you need to work with.

Compare Rates

As is the case with anything in life, it pays to shop wisely.  Because a home is the largest investment that most people will ever make, it stands to reason that comparison shopping is a must.  As you speak with various lenders, ask about their rates, loan terms, qualification process and down payment requirements.

Interest rates change often, which means locking in your rates when they are low can save you a bundle of money.  Because there are so many lenders competing for your business, you will be greeted with plenty of appealing offers, including low rates, closing costs and down payment requirements.

Demand the Best

You are the one buying the home, so you should be the one to choose the length of your loan term.  With the exception of a situation where payments are simply unaffordable, it’s up to you to decide how long you want to pay for a house.  Many homebuyers prefer a longer loan term to keep the payments low, while others want to get the home paid for as quickly as possible with a shorter term.  It’s important to keep in mind that the longer you pay for a home, the more money you will end up spending in interest.

It’s a good idea to talk to Mortgage Plus to accommodate your needs.  Even If you’re in doubt about which lender to choose or just need a little guidance, Mortgage Plus will be more than happy to assist you in making your dream of home ownership become a reality.

By choosing Mortgage Plus for a loan, you will get that continual service to make sure you are getting the best deal possible.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za