In essence buying a house is not really all that hard. You sign a contract, pay some money and someone hands you some keys. Now, the process is certainly more involved than that, but essentially, that is what happens.
The problem is, regardless of how easy you make it seem, there are some very simple yet expensive mistakes that can be made. Knowing your options is an absolute necessity when buying a home, especially for the first time and understanding all of the steps in the process can help avoid making some regrettable choices.
You may find some of the information in the property section of this site to be very useful. Here though, we will discuss some of the finance or loan aspects of buying a property.
Some of the aspects you will need to consider are as follows:
How much can you borrow?
Your borrowing capacity or the amount of money that a bank will lend you is largely affected by two things:
Your borrowing capacity can also be affected by other commitments you may have such as rent, car repayments, credit cards or other loan repayments.
There are certainly other factors that are also taken into consideration. However, the limit of what you can borrow is mainly affected by your income and the deposit or equity you have available.
You will find that lending criteria will vary between lenders and as such the amount you can borrow will also differ between lenders. It is important to note that whilst a lender may be prepared to lend you a substantial amount, it may not always be a good idea to borrow your maximum amount.
As part of an initial, obligation free, consultation we will help you determine and understand your borrowing capacity.
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