Getting a Home Loan? Answer These Questions First
As many homebuyers struggle to navigate the labyrinth of home loans applications, there are in fact common questions that one must answer before proceeding to the next steps in the application.
By answering these questions, one can decide whether they are really ready to apply for a loan. Some questions would also give insights as to whether that loan application is worth going through the stress and inconveniences.
How long are you planning to live in this area/location?
Home loans are relatively long term loans and as such, it would be wise to get one only if you plan to reside in that area for the foreseeable future. While it is true that you can always sell that property when you see the need to move to a new place, this should never be the sole motivation when getting one.
Ideally, only get a home loan if you plan to stay in that area much longer. Otherwise, you may want to consider renting instead. If you’re not sure whether you should take a home loan or just rent, you can talk to one of our expert brokers and they can assess your circumstance and help you decide which path to take.
Who will be living in the property?
Are you planning a family or reducing the size of the current family? Perhaps kids are probably leaving soon?
These family circumstances can help you decide whether getting a new mortgage is for you. If you’ve been living in a five-bedroom apartment then suddenly, for whatever reasons, your family size changes and you need to downsize your family dwelling, getting a new and much smaller house might be a wise decision to make.
If you’re purchasing a property for transitory reasons may not be an ideal circumstance. If the kids are going to college and purchasing a house for them may not be the ideal reason to get one.
Have you researched facilities/amenities/services in this location?
One of the most important aspects that homeowners need to know before even buying a house is to check the availability of various facilities, amenities, services, and vital infrastructures in the development.
Remember that you’ll be living in that area in the next few years, so make sure you have access to vital establishments such as schools for the kids, hospitals, supermarkets, parks and recreation areas, among others.
Without these, you may want to reconsider your decision or ask the developer or property owner if there are ongoing or proposed plans to build these facilities in the pipeline.
Will you need to let out to take a job elsewhere someday?
As previously mentioned, home loans are generally long-term loans. As much as possible, you only take out a home loan if you plan to stay in that area in the foreseeable future. But since things can happen in the future that no one expects, including the possibility of getting a job elsewhere, you really need to consider your long-term plans.
If you’ve been eyeing that promotion, which requires you to relocate someplace else, then you may want to reconsider your decision of getting a home loan. If you’re in doubt whether to get a home loan or not, make sure to talk to one of our brokers so you would be assisted on what to do next based on your personal circumstance.