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Basics of Buying a New Home on Mortgage - 5 Pieces of Advice

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After renting for a couple of years, you should have thought about the opportunity for buying your own home. Here are some practical bits of advice that you need to consider before buying a home.

1. Make an estimation of your finances.
The first thing to do after being sure you are ready to live in your own home is to consider your finances. You should be honest with yourself, and do not exaggerate your income and savings. If you don’t do this, the banker will do this for you. So, just save yourself this uncomfortable moment. When calculating, make a list not only of your income, but your expenses as well. This is necessary to see how much you will have left in the end of the month and whether it will be enough to cover the extra expense of the loan. This list will further help you to optimize your expenses and may motivate you to find ways to increase your income.

2. Research bank loans.
After the preparation of a good “income/expenses” list, you should start searching for information about bank loans. This information you could take both from banks’ websites and from independent financial portals. Browsing the corporate sites of the banks takes more time than looking for information in websites that are specialized for bank loans. Be aware, however, that sometimes these sites can be misleading and the information not updated or very brief. In order to not find yourself completely lost in all this data use the comparison tool, often offered on such websites. There should be a calculator to orient you to how much you will need to pay each month and the total sum, to be paid as a whole.

3. Look for a property.
When the rough calculation is made, it follows that a property should be chosen. Be wise and don’t go for a property which is not for your pocket. If you are not sure where to look, do some research in specialized real estate websites, buy a local newspaper, or visit an estate agency. What you must look for is the location, structure and appearance, area and price. The most important thing among all mentioned is definitely the price – if all other things are present but the price is high, you need to look for something else.

4. Go to the bank with the best conditions.
Long hours browsing the net should lead you to the right bank loan for you. If you are still not sure, ask a friend who’s financially aware and would give you some good advice. When setting your choice on a particular bank, you need to consult with a specialist of mortgage loans who will inform you about the procedures and documents and will make an initial estimation of the money they could lend you. The meeting with the bank specialists will finish with a print of the possible credit plan you will need to cover.

5. Apply for a loan.
Now it is up to you to arrange your time and settle all documents needed to apply for a loan. Visit institutions you need to obtain a reference from. Bear in mind to have extra money available for unexpected expenses related to the necessary documents. When you have the full set of documents, give them to the bank experts who will consider your application. If you are approved, the money negotiated will go straight to the account of the property owner. And in the end you will have your first home. Take the keys and enjoy your moments there.

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