Finally, it’s time for you to buy housing. Maybe it’s your first? Regardless, it is always special and exciting to think about all the fun you will have in the apartment and what interior you will have. In order for the apartment purchase to be as good as possible and to avoid the unnecessary worry that you miss something, you need to prepare.
1. Make a mortgage calculation
The very first thing you need to do before taking the step is to make a mortgage calculator. What do your incomes and expenses look like? Are you a cohabitant or married? Most banks offer a service for mortgage calculus on their websites. Using it, you can see how much you are allowed to borrow and what you can afford to buy.
Look at the prices in the areas you want to stay in. Then calculate your cash bet, you yourself need to pay at least 15 percent of the price of the condominium. Once you know your loan amount, you can try to figure out the interest cost. Here it is good to try counting on different interest rates so that you see how your cost changes if the interest goes up.
Under the new amortization rules, you should also amortize about 1-2 percent on the loan if the loan exceeds 50 percent of the market value of the dwelling. Also, do not forget that you pay a monthly fee to the housing association in addition to interest and mortgage payments.
2. Apply for a loan pledge
Now you have found out how high mortgage loans you can get, what your condominium may cost and how big expenses for the home that your finances can handle. It is time to contact the bank to get a loan promise that is a preliminary ruling from the bank that shows how much you can borrow. It costs nothing to get a loan promise and is not binding.
The loan promise is usually valid for six months and is based on your finances. Loan promise gives you a picture of what your financial framework looks like before the bidding.
3. Read about the association
Going on screenings is perhaps the most fun part of everything and now you are close to a home purchase. Many views are on the weekend, some are open, others you need to book in. Once in place, look around carefully, take the prospectus so that you can read at home in peace and quiet and ask many questions to the broker.
It is easy to be attributed over the details of the apartment but try to look beyond these. Does the apartment meet your requirements list? What can you compromise on? Do not forget that you have a duty of Investigation. You can not come after a purchase and get compensation for an error that you should have discovered on the display. After viewing, you can look at statistics and compare final prices for other apartments in the area. Also, take time to read about the housing association’s finances and statutes.
4. Set a maximum bid limit
You’ve made up your mind and you’re making a bid. The most important thing before placing a bid is to determine where your maximum bid limit goes. Stick to it, do not forget the amount in the loan promise even when the bidding pulls away and you are overpowered by your feelings for the apartment.
A bidding can be an emotional roller coaster, be prepared for it. You can submit bids both orally and in writing. The bid is not binding until you sign the contract.
5. Make sure the down payment is ready
Once you have won the bidding, you should contact your bank that will make an assessment of the dwelling and convert the loan promise into an application for a mortgage loan and take a credit report on you. In connection with the purchase, you must pay a down payment that is usually 10 percent of the purchase price. Before signing the purchase contract, carefully read all the parts.
6. Collect your finances at the bank for better interest
When the bank determines the interest rate, they assume an average interest rate but you can always negotiate with the bank about the interest rate. You need to show the bank that you are a valuable customer. Can you place more of your commitments in the bank, such as savings, pension savings and insurance?