This is a common question I get asked by new home buyers. While the information you gain from reading this article can make your decision much easier, there is no doubt that choosing a home comes with a host of decision making processes and expectations that you must consider when purchasing.
The first step for most people when purchasing a home is to visit some real estate websites and view property photos (and view pictures of their own homes). If your goal is to get to know your new home as a person, you’ll probably want to visit at least several websites to get their house up close and personal.
People who buy homes typically make the decision based on their own personal knowledge. They do not make decisions based on how they feel they can afford a home, but they do look at their bank’s loan calculator to get the total monthly cost.
If the total monthly cost is more than the home’s value, then they typically will ask for a property loan.
This is why most people go for the property loan. If the house is too expensive, they will probably look at other properties to get the loan, but those properties are generally going to be more expensive, and they may have to pay a percentage of the purchase price as a down payment.
This is one reason why you should never give any lender a first year’s worth of income. If the lender does not like your current financial situation, they will look at you as a negative risk. They will question you on your credit history, and in turn, they will want to take you off their book. It’s a common tactic of banks to try to get you to pay them more than they’re due.
As a rule, most banks would not accept a down payment of less than three months. Even if they did, you would need to have put down at least six months of income to get your down payment, so the lender would not really be that interested in your current financial situation.
The other tactic banks use is to try and scare you by saying some sort of negative things about your credit history. This is particularly effective when you’re dealing with a negative financial history and know that a bank has a negative rating on your credit. While this is not always true, there are plenty of banks that will agree to a three-month down payment to get a loan, but may not be willing to take a three-month down payment on a house to get a house loan.
This is particularly true when you are buying a home or a car. The banks also don’t want you to get a loan because they know that they will be able to get a bigger loan when they get the home or car loan.
When you go to a bank, you can ask for a three-month mortgage payment. This is because they are willing to give you a three-month loan as long as you have a positive credit history.
