3 great tips before getting a housing loan

Buying a place you could call home is the dream. It is also a necessity. But unfortunately not everyone could afford their own place. But for those who can, here are great tips before buying a house.

Vicinity

You have to check out the place before making your down payment. Check out the place near your house.

Supermarket

Is there a supermarket nearby so that you could buy the essentials and save up on fare. If there are no supermarket, check if there are convenience store or wet market.

Schools

Check out if there are schools nearby if you have kids. Consider the travel cost or how much you would have to pay for the school service. It would be a burden to your kid if they would spend to much time travelling. They could sleep a bit longer if you live near the school.

Also check out the school. Make sure it is higly rated. This could highly affect your child’s future.

Hospital and clinic

Check out if there any hospital or clinic nearby in case of emergency. This is obviously impotant. It would be a hassle if you are sick and need to see a doctor and you live to far from the hospital. This could save lives. So consider this before making any decisions.

Police Station and Fire Station

It is pretty obvious why this is important. So won’t dwell on it too much.

Seller

Check out the people or company (Developer) you are getting your house from. Check out their credentials. There are a lot of scammers out there and you wouldn’t want your hard earn money go to waste. Do your research. Ask people about the place that you are planning to get. It is better safe than sorry.

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Also check out the sales agent. Again check out the credentials. Make sure that they are actually connected with the housing developer that you are getting your house from. Based on my experience, once the sales agent got the sale, your on your own. we didn’t get much help when asking for updates about house. So choose wisely.

Your personal finance

This is important. Check out the rates and compared them when getting a housing loan. Check which rates would be better. Would it be better to get a bank housing loan or woud it be better to get your loan through a government agency. Here in the Philippines, you can get a housing loan through a government agency called Pagibig. Pagibig housing loan interest rate is way much lower compared to a bank loan. Also you can pay the loan for a longer period. I heard that if you get a loan through a bank the maximum number of years that you could pay is only 15 years while if you are going to get a loan via loan, the maximum number of years is 30 years. Off course that depends on our paying capability.

Before making a decision to get a house also check out your personal finance. To make it simple ask yourself if you can actually pay for the housing loan now and not after a few years. I know what you are thinking. You might be telling yourself that the value of your money would depreciate in the coming years. So for example, your monthly mortgage would cost Twelve thousand pesos, the amount wouldn’t have the same value in the coming years. But you have to consider inflation and the posiibility that the institution that you got your money from would increase their interest rate. Also consider your salary. Would your income increase in the following years? That is something that you have to consider.

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Before buying your house, you can use a financial Quadrant before making the decision. Basically what it is a decision chart to help you decide whether the purchase is needed. Needs are the priority such as food, shelter, rent or mortgage. Wants are not necessity and things that you could live without such as buying a new gadget, dining in a fancy restaurant. It is something that you don’t really need but want it as a reward for your hard work.

I know a lot of people do want to get a loan since they are afraid that they wouldn’t be able to pay them in the future but people can use debt to achieve their dream of getting a new house.

When we started paying for the downpayment for our house two years ago, we were not sure that we could afford it. We just mustered our courage and started paying for the house. Two years after we were able to move in. We later found out that the house that we got is selling for a higher price today. If we didn’t decide to get the house back then, we could have been paying higher mortgage if we decided to just get it now.

What are your thoughts?

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