By: Philmar Saripada
Many people have lost their homes in the past few years because they did not take the time to plan and prepare themselves. These people ended up losing their life savings. The reason? They failed to do the proper financial planning for their investment. There is a misconception that investments must come purely from one’s savings, but that is not entirely true. Sometimes investing means incurring healthy debts.
Not all debt is bad debt. There is also good debt, like what we used to buy assets, especially on real estate or businesses that will eventually appreciate the value of our money and increase our wealth. Whether we are talking about good debt or bad debt, we should treat all debt with a healthy outlook. But even healthy loans used to buy suitable investments can lead to financial problems if we do not have the proper knowledge to manage them.
Qualifying for a home loan is all about preparation. It starts with a good judgment on your budget plan to avoid getting into bad debt situations. Figure out how much you can afford on a mortgage payment by carefully reviewing your budget.
Generally, there are five Cs of credit that is used by lenders to gauge potential borrowers’ creditworthiness:
Furthermore, there are five main areas lenders evaluate to decide for a home loan to further explain.
A consumer’s credit history is a measure of their ability to repay debts and demonstrated responsibility in repaying debts. Having a good credit record will lead you to higher chances to be approved for a loan. Although some may qualify on some loans with bad credit but end up paying a much higher interest rate, which means a higher payment. So be careful before accepting high-cost loans.
Lenders look at how much money you make compared to your bills. They want to make sure that you make enough money to make all your monthly payments and still have some funds left. Having a low debt-to-income ratio lessens your personal risk when buying a property.
These are the money you have readily available or assets quickly converted into cash, like checking or savings account. Lenders want to be sure that you have enough liquid assets or cash on hand to cover your payments for a few months. It is best to have at least six (6) months of payments set aside, in addition to the down payment, before buying real estate.
If you qualify for a loan, equity is defined as how much of a down payment you are putting. The higher the down payment, the easier time you will be qualified for a loan.
This is the asset you pledge in exchange for the loan. In the case of real estate, the property itself is the collateral of the loan. The lender actually owns the home until the mortgage gets paid off in full. If you happened to stop or fail to pay the loan, the lender would take back the property.
Now that you have an idea of the mortgage system, you may avoid paying too much for a home loan and have the right of money saved up for your first property purchased. This puts you in a financial situation where you can still enjoy your living situation with the least stress and anxiety.
Does your dream home qualify for a mortgage? Find more information at www.camella.com.ph or contact 0917 5639 617.
By: Kevin Jay Adaya
It’s common for every consumer to practically weigh whether they prioritize quality or price the of purchase before acquiring a particular product. Quality must indeed come first, in all aspects since we can all agree that we aim for a long-lasting purchase from our hard-earned money. Still, we cannot deny the fact that not all have the luxury to buy products that basically ensure quality. Well, though you might enjoy the best of both worlds in a single purchase, often one must be compromised by the other. But what should we first consider when mainly we are talking in a real estate manner of acquisition?
Here, we'll discuss some of the main factors to know how and what to consider upon purchasing real estate property, especially now that Real Estate Investment Trust, according to experts are seen to draw an increase in real estate activities in the entire country now and in the next few years.
1. LOCATION WISE
One essential factor to consider on acquiring your home is the location. It generally helps a significant amount of saving for you by merely looking into whether you can save by having all your basic necessities just a few meters away from you. It is better to better to pay a premium for property that gives you access to basic commodities not just for you, but for the whole family, like grocery, church, school, hospital, and other major establishments, than have a cheap property but has miles away to all your needs.
2. AFFECTING FACTORS
The next one might be too analytical and personal since you will be considering all your senses' preferences. Can I live in an environment nearly urbanized, or quite away from the city? Can I compromise my sense of sensitivity in terms of weather, knowing that I'd be living in high ridges where the cold breeze is very present? Do I really have a choice, or am I forced to live near business developments and bus terminal where foot traffic is constant at all times? Yes, you might want to feel the vibe before acquiring the property because it will greatly cost you an undefined price. You'll never want to take risks by just saying, "Nah, I'll get used to these new things I am not to, by the time I moved in here" when you know in your very true self that you won't, with a heavy heart.
3. FINANCIAL ASPECTS
But in a heavier and more technical aspect of all these considerations, you need to properly evaluate the property. In a more vague perspective, you must analyze the value of the property for future financing, consider all the insurances there is, the taxation which sets a big portion of the total cost and try to consider (even if you will not, but for the future price, in case you might need to) whether how much will it grow if you either have it for buy and rent, buy and lease, buy and sell or such likes.
To sum up all these concerns with good pricing, you will be besting it if you buy low and then sell high. That way, you'll have more profit. That leads you to acquire more and more properties. Considering that several Real estate developers are now offering new and various forms of affordable properties such as townhouses, and other prime subdivisions like Camella are now being offered that suits all the needs each of us wants.
Do you know more things and ways to consider how to know if you're getting a good price in getting your property? If you do, let us know by sending us a chat at camella.com.ph/inquire.
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