Buying a home may be one of the more exciting times in a person’s life, but unfortunately, in recent years, it is becoming a financial decision that some people just can not afford to do, despite forging ahead with such plans.
With increasing numbers of people taking on mortgages and having to default on them only a few months into their new venture, it is sound financial common sense to make sure you really can afford that new mortgage, before you take that substantial financial leap.
Can You Comfortably Afford Your Repayments?
If you have done your calculations and determined that you may just be able to make it work, then the truth of the matter is that you do not have enough to comfortably cover your mortgage repayments.
There is no room for maneuver here, as your budget needs to be able to determine that you can set aside the required amounts monthly without having to resort to any other measures to obtain this payment.
Can You Make the Purchase with Financial Confidence?
A big part of taking on a mortgage is feeling secure enough and that you are finally at the stage, finance wise, to take on such a responsibility.
If you have that sinking feeling about the whole process and your ability to purchase a home, take heed of this feeling and stop.
Thousands of people enter their mortgages knowing deep down only too well that the associated costs are too much. It’s better to say so immediately, rather than when the ink is dry on the contract.
Can You Manage Without an Assistance Program?
Several assisted programs exist to help homeowners with that first down payment as well as closing costs. Though many believe this is a great help at the initial stages, ask yourself if this is helpful if you must resort to financial support at this very early stage of the process?
If you could not otherwise afford your home without such assistance what does this immediately tell you?