Buying a house is one of the most expensive purchases than an individual can make. Houses donâ€™t come cheap and real estate prices keep fluctuating to increase by the day. The purchase of a house is one of the biggest financial decisions for anyone. It is not every day that you can think of buying a house. You have to be able to support that decision with sufficient funds. Even if you intend to buy a house with the help of a loan, your financial situation should be stable enough to repay the loan else you will just end up feeling horrible and frustrated.
You have to ensure that you calculate your finances accurately at the time of buying a new house. The best way to do this is to calculate the ratio of your income and expenses. This is commonly known as a debt-toincome ratio and most money lenders recommend that it should not be more than 36%. When you take a mortgage, the debt should be less than 28% of your monthly income to maintain a fair balance. However, it is also important to consider personal aspects which will directly affect this financial investment. For example, youâ€™ve calculated your debt to income ratio but youâ€™ve not set aside enough savings to cover any emergency medical expenses like the hospitalization cost of a family member. This will again lead to a financial crisis.
Bad mortgages are the last thing which you will ever want. So, finding the perfect mortgage plan has to be a smart decision. This is because youâ€™ll be financing a loan which is worth a couple of thousand pounds. You have the choice of opting for a fixed interest loan or an adjustable interest loan. In both cases, you will have to ensure that you have a stable income, however; the adjustable interest loan allows you to forgo some of the stability in payments for the ability of the mortgage to adjust with prevailing interest rates. On the other hand, a fixed interest loan assures you that even if the interest rates go up; you will continue to pay at the same lower rate.
Once you have sorted out your finances and are 100% sure that you can go ahead with this big purchase, it is best to hire a real estate agent to find you that perfect house. Real estate agents are the only ones who are informed about every house on sale in a particular area. They not only know how the real estate market works but are also well aware of the market rates and current market situation. Of course, the agent will charge you a small percentage as commission for his services but you can be assured that it is money well spent. A good real estate agent will find you a house which matches your exact specifications and will also ensure that he gets you a good deal after negotiating with the seller. If you are interested in buying a new house in Newton Abbot and need the help of a real estate agent, click here [ website link ]