In today’s civilized world the average person in the world does not have to own his/her whole housing plan (or burden) all by him/herself, he or she can choose to exercise options, leverage on his equity or share of ownership and to do this, he or she requires an enabling mortgage system in place, which is working, up and doing.
It is always easy for people to jump towards anywhere there seems to be free money, but what about the catch, is there any trap?
Do you understand the terms and conditions properly?
It is always wise to know what to expect, don’t be fooled by the terminologies financial experts use to confuse novice(s), you will need to know the obstacles you will face and how to remove them. That is why we have put together 5 things you should do when getting a mortgage.
1. Make sure you do a careful search, through an estate surveyor and valuer who knows his onion well so you are not sold a bad property, simple people fall into the hand of fraudsters in their pursuit of owning or purchasing a property. Make sure your surveyor or researcher comes highly recommended and has enough experience.
2. Find out why the property you are interested in is being sold, you don’t want to purchase what other people are trying to dispose of. Check very well to secure a mortgage, set a timeframe, and know the procedures and the right steps to take.
3. Talk to one, two, or more banks to have a comfortable comparative analysis that will give you an advantage in the course of your goal and getting it. You should have enough choices to choose from. Also, consider the penalty clause to redeem your mortgage. This should give you a flexible plan option to pay off your mortgage or negotiate interest charges with your bank.
4. Be wise about the documentation, processes, and protocols, due diligence the checklist and all other criteria such as property description, aerial photographs, if it is an existing property in hard and soft copy, Architectural drawings, bill of quantity, etc the application process, information to the bank about your earning ability or capacity, expenditures and pattern. The bank will ask you this before they tell you how much they can advance you. You can also do a cash flow analysis of yourself, your profit and loss account, and your personal balance sheet.
5. Understand and review clauses banks imposing their estate surveyor & valuer or agents to search value or other services. Be settled about the payment options i.e. down payment to keep the seller happy. And don’t forget the Deed of assignment transfer from the seller to the buyer and the proceedings for final payment.
With all these in place, you should be able to enjoy your mortgage and have no issues in the future. Don’t forget to refer someone who this article might help.