Are you ready to take out a mortgage to buy a property? Do you meet all the necessary conditions for this? Check when to take a mortgage before you decide to buy e.g. an apartment for money borrowed from the bank.
When deciding on a mortgage (housing) loan, it is worth remembering that the decision we make ties us financially with the bank for many long years. There are people who make such decisions with a light hand, using the entire range of financial products available on the market.
There are also those who avoid any credit at all. Often, however, if you are thinking about buying a construction plot, a house or a flat, you need to ask the bank for financial help. When is it really worth taking a mortgage?
When we rent an apartment
Often afraid of credit obligations, many people decide to rent an apartment on their own, with roommates, or live with a family. In the first case, if the cost of housing is much lower compared to the loan installment, it can be profitable (it should be remembered that such an apartment will never be our property).
However, if the rental costs are higher than the cost of installments, it is better to think about a mortgage.
If you live with a family or with roommates, the cost of living is definitely much lower. However, if you plan to start a family or we care about privacy, your own apartment can become a priority.
When we have an employment contract
Of course, the easiest way to get a mortgage is when you have a contract of employment (preferably for an indefinite period). This is not excluded from other forms of employment, but then you need to show additional collateral for the loan.
It is worth to use it from the services of a financial expert who will help you calculate your creditworthiness and compare the best bank offers for us. If we know what credit we can afford, we can start planning the future related to buying our own apartment and look for the most optimal offer on the market.
When we have financial security guaranteed
Remember that a mortgage is a long-term commitment. Even if we can afford to pay back high loan installments at the moment, it is worth considering whether our financial situation will change in the next few years? Of course, you can’t predict everything, especially random events, but it’s worth thinking about what might happen in our lives in the future.
When we can take a loan together
If we can take a mortgage together with a spouse, then we can be sure that in the event of loss of financial liquidity of one person, installments can be repaid from the salary of the other borrower.
This gives a great sense of security. However, it should be remembered that the mortgage is a long-term commitment, so it is worth taking it only with a person whom we have complete confidence in.