Buying a house is an illusion, but it is also a responsibility for whoever does it. Therefore, when getting into a mortgage to buy a home, especially if it is the first time it is done, it is advisable to follow a series of tips and steps to avoid that the debt is unaffordable and, in the long term, the house can be lost.
Tips to avoid getting ruined by your mortgage
- Make a list of income and expenses: You do not have to be an economist to make a list of the usual income;and expenses of the family. In the short term, the salaries of the adult members, the possible ordinary income of another type (actions, rents, etc.) must be included. And also the expenses on food, energy for the home, clothing, children’s school and other loans (for the car, the furniture, the various repairs).
- Limit the mortgage to 30% of the income: Once checked the usual income, it is not advisable to pay a mortgage that has a cost higher than 30% of these. Since the housing crisis, banks are very cautious when signing a mortgage that exceeds 50% of the ordinary income (wages) of applicants. Limiting it to 30% is an extra advantage that prevents against unforeseen events such as salary decreases, layoffs or general economic crises to come. In short, it is about fulfilling a capacity of indebtedness that can be assumed by the family, which makes it possible to overcome any danger along the way.
- Limit mortgaged money: Another tip is to limit the amount to apply for mortgage coverage. Until a few years ago, it was usual to include in the mortgage loan extraordinary amounts with which to pay the first furniture and the entrance. Today, financial institutions are also cautious and in rare cases exceed 80% of the total cost of housing. Anyway, we must remember that the more money is requested, the more you have to pay back, the more fees, and the higher the amount of interest on the total amount returned.
- About fees and total time: Although paying a high monthly amount in the short term can be a stigma that is difficult to accept, in the long term it is undoubtedly a wise choice. Paying low installments extends the time it will take to return the mortgage. And the working age is what it is, as of certain years the productivity and the performance in the work diminish and, with this, the salaries and the economic capacity. Obtaining a mortgage that is paid before age 50 allows you to have an old age without debts.
- Monitor the price of housing: Finally, the last advice is not so much mortgage, but in general control of housing. The prices are difficult to lower much more, for months they have found their soil and in the future, it is possible that they rise. In this way, housing, in the medium term, could be revalued.