The complete guide to optimizing your home loan!
Buying a home is not a decision that you make quickly. You are looking for a new place to settle down, probably with your girlfriend and possibly even children. So there are some expectations and requirements to meet. You have therefore not found anything in the short term. The search for the ideal house can sometimes take a long time because one house has too little and the other house too much. Sometimes you do not agree with the seller about a price that makes you drop out. Too many activities that still have to be done are all matters that play a role. Of course the price is what you ultimately decide on and makes an offer for. But you must first discuss this with the bank. That way you make a bid within your means and you are pretty sure that the sale can continue.
How much you can borrow
There are many examples of people who bid on a home without knowing what their borrowing capacity is. So they don’t know how much they can borrow and whether they can get a loan. So first go to a few banks or inquire via the internet to discuss your situation. Present your income and expenses to start the calculation. Because that is where it starts for a bank, what is your financial situation at the time of the application. It goes without saying that you must be able to prove that you have a fixed income. Only in this way can you pay off a loan. And you may have fixed expenses, but not too much so that there is enough left over for all other costs that you have. Other loans and alimony count towards fixed expenses for a bank. There is a general rule for all banks that states that you can use around 1 / 3rd of your income to pay off loans. You must be able to use the remaining part of your money to do your daily shopping and to pay other costs. Because electricity, water, heating, internet, insurance and the like also cost a lot of money in a year.
Inquire via websites
If you do not want to go to a bank branch yet, you can in the first place inquire via the websites of banks. It contains simulation tools that you can use for free. This way you already have a first idea of what the loan will cost you on a monthly basis. This is of course with a distribution of capital and costs. Because with a payment there is always a part of costs or interest that you have to pay back to the bank. During this simulation you can also enter whether you want to use your own capital for the purchase of the home. So savings that you can use for this. Also keep in mind that you will have to pay the notary fees yourself. This is often a considerable amount that you must have in your own hands. If you ask a bank to borrow this, you will often receive a negative answer.