1. Determine the house you need
This is the very first question you should ask yourself before buying or building a house. What kind of house do I need (does my family need)?
Consider the size of your family and if everyone is grown up or if there are still toddlers or small children. Are there children below 18 years old? For a family with five members or less, a bungalow with three bedrooms is enough. One room is for the couple, and the two bedrooms are for the three kids. The rooms may be installed with double-deck beds to accommodate two occupants.
If your budget is enough, you may give each child their own room. If you are on a tight budget, be smart enough to have your family members share a room. Remember that your children will have their own jobs soon and they will leave the house and live separately, so be wise enough to get a house that you can afford. Again, the size and style of the house you will build or purchase depends on your budget.
If you need a work room or an office sort of, you can always convert one room to be your work room. Employ minimalism so that you may not worry about stuffing and decorating your house.
2. Know your budget
Take a hard look on your available budget. Is it enough to finance the house you need? Determine the kind of house your budget can afford to buy or finance. Are you planning to apply for a housing loan? This is also very helpful especially if you know how to budget your money and set aside an amount that is intended to pay the mortgage.
Lending institutions apply the so-called 20% cash out if you’re availing for the loan. That means that you should be able to finance the 20% of the total amount of the loan that you need. For example, if you’re applying for a one million pesos loan, you should prepare 20,000 as the cash out and the 80% will be financed by the lending company.
If you already have determined how much cash you have or can afford to acquire before finally buying or building your house, then you are ready for the housing project. The next step to do is to research the market for available houses for sale or for available lots for sale, (in case you prefer to build your house rather than buying.)
3. Look for houses or lots for sale
If you have identified what kind of house you need and you have determined how much budget you have and how will you finance the acquisition of your property, then it’s time for you to look for available houses for sale that match your requirements. If you want to build instead of buying, then look for a lot. Consider few important things like location. Is the property close to the center? Does it have good transportation and is it accessible to hospitals, schools, banks, and commercial areas?
All of these things need to be considered before finally deciding to buy the property.
4. Seek advice
Consider seeking the advice of real estate experts. They can help you find the home that fits your needs and requirements. They can also help you find the best lending institution that can offer the best housing loan with affordable mortgage.
They can help you with the processing because purchasing a property involves a lot of process and fees. These real estate professionals will ask some fees for their services, of course, but it is all gonna worth it because you will be stress free. You are just dealing with one person to process everything rather than you, yourself will go to many agencies to process it.
5. Secure Financing
If you have decided to apply for a housing loan, be sure to be ready with the needed documents such as certification of employment and take home pay, pay slips or payroll, a co-maker or guarantor, income tax returns, a collateral (if needed), and your cash out.
It is also advised to seek the help of a mortgage broker to help you with the process. However, if you think you can manage it, then go for it. Try getting the terms and conditions of several lending institutions and compare. Then choose the best one that offers affordable terms and conditions and works well for you.
7. Prioritize your needs and save
Assuming that you already have bought or built your house, always bear in mind that the process does not end there for the most challenging part is about to begin. Indeed, your first mortgage will come and you will have monthly amortization for how many years of payment you have applied for.
Worry not, for sure you did not apply for a loan that you can’t afford to pay. You can augment your finances by only buying your needs and refraining from buying your wants.
Save. Look for other sources of income where you can increase your savings. Be positive. As long as you are positive and you know your priorities, you will survive and before you know it, your loan is about to end and you will have your home yours forever!
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