Buying a house with cold cash is almost unheard of nowadays. If at all, it just happens in the movies and in books. The reality of it is that people would want to hold on to their cash a little longer, and if there were available other mechanisms that will keep them from separating with their life savings, then that is the better option.
Getting a house through financing options is the most usual way of acquiring properties and probably the wisest, too. But as with anything else, a little note of caution should be said when getting a home loan.
Many financing institutions will offer multiple schemes and facilities for you to get funding for your new home. These schemes will have different loan limits, payment schemes and many other options. They will usually have five, ten, fifteen maybe even twenty or more years in which you can pay your home loans, on a monthly installment basis. Admittedly this is very attractive but please do not be trigger-happy when you apply for a loan. Always remember that you and you alone will eventually pay for these loans and so you should take note of how much you can pay for a month for the duration of the loan. And because home loans like these especially in-house financing, usually lasts multiple years, you should consider as well the changes that will happen in your family in the future. Make room for added expenditures such as the arrival of a new baby or retirement of your parents. This will ultimately affect your spending powers which can in turn affect your ability to pay your monthly installment and which will in turn result to a bad credit report – something you definitely don’t want.
Make sure to scout as well for the best proposal, and find a loan scheme that best fits your lifestyle. Lenders sometimes throw in some freebies when you sign up with them and rates of interest also vary from lender to lender so make sure to choose the most attractive of them all. Follow all this and you are on your way to acquiring your new home.