To Buy Or Not To Buy
“To buy or not to buy”- We can safely consider this the Shakespearean equivalent of the modern mindset. And it’s not only limited to makeup, cars or boats but is applicable to home-buying too. In fact, one of the most important decisions facing most young adults and first time homeowners, especially in today’s volatile property market, is whether this would be an ideal time to take out a loan to buy that house, or perhaps wait a little longer until things have calmed down. The best people to ask would obviously be those capable of supplying financial advice or even loan advice about the current market trends. Before you spend money, however, read through our list of finance advice and loan advice tips to ensure that you get the basics down before moving on to the big arena:
Finance Advice
Finance Advice – Tip #1: Get your priorities straight. Now is the time to list your financial priorities according to your basic needs: what do you need to spend money on every month (e.g. food, accommodation, taxes, etc.) and what can be seen as luxury spending?
Finance Advice – Tip #2: Budget your expenses. In the aforementioned tip we asked you to prioritise, now we’re recommending setting up a fixed monthly budget. This will help you see where you are spending too much and where you might just be able to save a penny.
Finance Advice – Tip #3: Save where you can! Saving is hard, it really is. Especially if you enjoy investing in small things, all of which add up to a fair amount of money. As a prospective buyer, it might be in your best interest to save where you can should the unforeseen occur in the future.
Finance Advice – Tip #4: Eliminate debt! Is there a national war on debt? No? Well, there should be. Debt is a crippling factor in life, constantly keeping you bound. Invest in your own financial freedom (and a good credit record) by eliminating all debts as soon as possible.
Finance Advice – Tip #5: Invest. Having stocks, bonds or any other type of investment could be beneficial when applying for that mortgage and could be a saving grace in times of trouble.
Loan Advice
Unfortunately loan advice is not as simple as finance advice due to the various loans offered by the various financial institutions out there each with its own terms and conditions. The following should serve as the basics of loan advice.
Loan Advice – Tip #1: Know what you can afford. If you shop with your eyes, now is the time to start shopping with your head. Take your carefully planned budget and work out what you can comfortably afford whilst still saving.
Loan Advice – Tip #2: Shop around. Do the homework and shop around for the best deal. Getting stuck with excessive interest rates and other expenses will only afford you headaches and could make the pleasure of owning a house a burden.
Loan Advice – Tip #3: Pay attention to detail. It’s not only about interest rates, but about all the extras too. What is the interest rate on the amount borrowed and is it fixed or variable? What is the term of the loan and is there a penalty for early settlement of the loan? Are there any administrative or arrangement fees?
Loan Advice – Tip #4: Keep your payments regular. This is essential as one missed payment could see your property enter into pre foreclosure which could ultimately lead to a bad credit record and the loss of the property.
Loan Advice – Tip #5: Don’t hesitate to ask for help. If you don’t have any savings to fall back on when trouble strikes, it would be best to ask for some assistance, either with the lender or a 3rd party. Do note that there are many scams in circulation where third party companies are considered. Our advice is to always have legal representation present before signing anything.
As you can see, loan advice and finance advice rely on sound principles and just a little bit of common sense. Should you be in need of additional loan or finance advice, it would be best to seek the help of a professional in your area.