Buying a new house is indeed a dream come true. However, it is not easy to achieve this most particularly because of financial reasons. People say it is easy to apply for home loan but what you need to realise is that home loan provides financial assistance only. You apply for a loan and then you pay for it. In short, you need to be ready and capable of paying the money you borrowed. Plus of course, you will also pay for the down payment which is usually 20%.
To ensure that you are ready to apply for home loan to buy a house, here are some considerations:
Do you have stable job or source of income?
Receiving loan is indeed very helpful in the present. Of course, you will have money to buy a house. You will be able to buy a house which is indeed amazing! But you should also take into consideration the long term. You need to pay for that loan. Therefore, you need to have a stable job or source of income.
So if you have been working in your company for at least 3 years then you may say that your position and work there is stable so you can go ahead and apply for a loan. However, if you’re working for less than a year and your status is not even regular then you might want to pause your plan of applying for home loan.
It is also best if you have additional source of income like a business. This gives you more money to pay off your debts. It also serves as your fallback in case something unexpected happen to your day job. It is always best to have plan B.
Do you have savings?
When buying a house, you need to pay for the 20 percent down payment so you need to secure this amount of money before giving your plan a green light. However, you need to ensure that you still have money in your savings except the money for the down payment. This way, you know that you still have money for times of emergency.
Do you have other loans you’re currently paying?
Another thing to consider is if you have existing loan that you currently paying for. The problem is that it might be too heavy for you to pay for more than one loan. What you can do is wait for your existing loan to be paid off completely before you apply for home loan.
Are you ready to buy a house?
So do you think you are ready to apply for a loan and buy a house? The thought of buying or investing in Lendlease real estate in Adelaide or any city is definitely exciting. However, you should think this through as many times as possible. Yes, it is easy to apply for home loan but the big question is that can you pay for it for the next few years? Make sure that you are ready, keep in mind the things that we discussed here to avoid problems in the future.