When is really the right time to get a mortgage? Do you have to wait until you gain enough savings, or should you take the chance now while the value of the property is still within your reach?
Preparing to take out a mortgage is a huge challenge. You want to finally make your dream a reality but you are also worried that you are unable to repay the loan. If you are planning to avail of the right to buy mortgage program of the government especially if you have been a tenant of the property you are living in for the past three years, you can do so. You just need to get ready to go through quite a long process.
Organise all your documents
Applying for this loan requires a lot of documents. You need to submit all of them before your application is granted. Sometimes, applications are denied on the basis of missing documents. Therefore, you need to prepare them now. Even if you are not yet applying, it is an advantage if you have all these documents ready.
Study the application forms
There are different forms required at every phase of the application. There are items in the form that you will have a hard time answering or you are unsure of. Consult with experts in advance so that all information you provide is accurate.
Get ready with a deposit
When applying for a mortgage, a deposit is normally required, and you need to prove that you have the capacity to pay the loan. The good thing is that under the right to buy mortgage scheme, you can use the given discount as a deposit. You need not come up with a huge amount of money right away. This would affect the computation of the monthly mortgage payment later, but it is fine.
Have a buffer
Once you have applied for the loan, the next step is to repay it. You won’t be financially stable all the time. Therefore, it helps if you have a cash buffer. This saves you when you are unable to pay due to emergency situations or other problems.
Get the right loans
Even if you have gotten a huge discount under the right to buy mortgage program, it is still quite a huge amount. Therefore, you need to find the most reasonable mortgage loans that you can repay over time. Just check the options and find out if you can afford the terms and conditions.
Once you have fully understood the mortgage you are taking out and you are financially capable of moving ahead with this challenge, it is time to get the loan.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
