Home-ownership comes with great responsibility. A house is perhaps the costliest thing you would ever buy, and a mortgage is a major financial obligation. Even if you buy a property in a hot real estate market, like Cavite, you ought to exercise due diligence to determine whether you’re ready for it or not.
Property Survey shares that any insightful Lancaster review would give these tips:
Weigh Earnings Against Expenses
The size of the loan you can take depends on your monthly income. In fact, Pag-IBIG provides calculators to help you know how much money you can borrow based on your situation. However, they only take gross income into account. In reality, you need to factor in your usual expenses to evaluate your suitability for home ownership with better accuracy.
Be realistic with the amount of money you regularly make every month as well as your necessary expenditures. Most lenders recommend allotting 28% of your gross income on your mortgage repayments.
Think About Job Security
Having a good job now is one thing, but having a sustainable source of income is another. There’s no telling what tomorrow would bring, and job security is one of its uncertainties. Without adequate savings to manage your repayments, the possibility of being jobless in the future may cause you to default on your loan later on.
You may have a great income and a stable job now, but what if you suddenly pass away? Without having any form of insurance, the lender might foreclose on the unpaid loan and leave your surviving family homeless. Apart from getting life insurance, including mortgage redemption insurance in your loan is key to cover the outstanding loan balance in case you die or become disabled.
Buying a house is fun, but don’t forget about the less exciting side of the process to make sound decisions. If it’s not yet your time to buy, don’t rush into things to avoid putting your family in a terrible financial situation.