As I known, the main roadblock when buying house is cash. Before you looking for a housing loan, make sure that you handle your income and current expenses very well. This is the basic information that you should know you are get ready to buy your first home. Normally, I will consider the factors as below:
1. Down Payment
Normally, down payment of 10-20% will make you easier to qualify for a housing loan in today’s market. If you don’t have much money for your down payment then you still can find other program that does not require you to put down payment. But, you have to have good credit so later time you won’t have any financial crisis.
2. Mortgage Monthly Payment
Based on other people guideline, 30% of total income should be the maximum allocation for housing loan installment. But for me, i will try to make it 20% of my total income. This is to ensure that I can have more allocation of income for other purposes.
You can try to practice your affordability to pay your housing monthly installment by transferring allocation of your salary immediately to your saving account after you received it. This is to prevent any bad debt occurs.
For me, buying property is the expensive investment in our life. Thus, you need to
think properly when buying any property as this may easily burden your cash flow for
20 to 30 years. If you not afford to take this commitment, please don’t do so else you may not have financial stable in future.
For those who earn low income, it’s advisable to think big and since it’s hard to anticipate now as their family may grow in future. So, the decision is very important or they can try to buy it in the next few years in order to accommodate the new pets, or new baby.
