Getting a mortgage deal in this housing market can prove to be extremely pricey. Renting to own may be much more expensive in the long run, but it’s a more stable form of investment if ever you need to relocate elsewhere. Having your property in the current state of the property economy can prove to be one of the biggest gambles you take that might give the highest reward. Though the numbers may be large and horrifying to look at, there are ways to ensure that owning a home won’t leave you bankrupt. Here are a few tips that you should take note of if you’re looking to cut down on your monthly mortgage.
Assessing your monthly to yearly expenses
The most common mistake that first-timers make in securing a loan is not having computed for their monthly payments beforehand. It might seem like a tedious task, but it’s one that can pay off well in the long run, so you won’t have to face unintentionally being unable to pay for the full loan. Archiving your receipts is never fun, but since you already need to do it to compute your taxes, you might as well go the extra mile and make a separate record to calculate your current living costs.
Three to four months to record your monthly expenses and current savings can give you a substantial number that you can use to pay off your monthly loan. If your numbers are somewhere close to five digits, then you might have a good chance of staying afloat in terms of affording the electricity bills and grocery costs together with your mortgage.
Taking note of your future expenses post-mortgage deal
After you make the deal, you need to cough up first a 20% down payment of the property’s total price. You might have to secure a second lender if you’ve already scheduled your move to the property in advance. Besides the down payment, you also need to take note of the increased taxes per month. After computing for your potential monthly savings, you need to take note of fees such as homeowner’s tax or facility costs that may be tied to your monthly payments. It’s a smart tactic to compute for an increase of at most three to five percent in the current fees to see how much they’ll amount to in the next few months.
Sifting through money lenders
If it’s your first time buying in the housing market, you should know that it’s not a safe place to go in alone. There are local websites such as mortgage-wise.co.uk that offer mortgage brokers who can help you settle a deal with money lenders. Though getting an alternative money lender to secure your mortgage can be a great alternative, as with any economy, it’s filled with people in business looking to flush out newcomers through ridiculous processing fees and additional costs. Having a mortgage broker deal with the negotiations for you can put your mind at ease in negotiating a reasonable agreement for you.