How to Know if You are Ready for a Home Loan

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A home loan makes owning a house possible; especially for those of us who have limited funds. Despite being convenient, a home loan does require a rather large financial commitment.

Are you planning on having a house of your own through a home loan? Are you worried that you’re not prepared to take on this commitment yet? Ask yourself the questions below and find out if you are ready or not!

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Do I Have a Stable Income and is My Source of Income Long-Term?

When you answer this question, do not just consider the present. Think further into the future. Home loans take at least several years to pay off. Having a stable income is a must when you get a home loan. Breaking off your contract because of financial issues will cause massive problems for you. Before you get a home loan, make sure that your source of income is as stable as can be.

Is My Monthly Budget Enough?

Take your monthly essentials and bills into consideration. Will a home loan repayment take away most of your spare monthly funds? If yes, then you may need to wait a little longer or find an additional source of income. Being wise and honest with your financial status will save you from future trouble.

Do I Handle My Debts and Bills Well?

Your credit record is a very important factor for home loan application. It will affect the lender’s impression about you. Paying your bills and credits on time will benefit your home loan offer. If you currently have some payment issues, you may want to settle those before sending in your application.

Do I have Enough Savings for a Down Payment?

When you’re planning to take a home loan, you should have your down payment ready. Your down payment will affect the cost of your monthly repayments and the interest rate of your home loan. The greater your down payment is, the greater benefit it makes on your account. So, set aside as much as you can for your down payment.

If some of your answers have been negative, then you may need to postpone your home loan plans. Work on the areas where you need to do better. Give yourself some time. It’s better to be late than sorry!

If you’ve aced all of the questions, then you’re probably ready to make this commitment!

Happy house hunting!

Also check out Roshi Singapore for refinance home loans.

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