Be in control of your finances
Category Money
It is non-negotiable: You need to be on top of your money matters if you want to apply for a home loan and be successful in your application.
It is important to have a clear understanding of your financial position, especially if you are considering buying your first property.
Here are a few questions that you will need to ask yourself before you visit a bond originator or your local bank branch:
Question 1: Do I have a detailed list containing all of my income and expenses (personal and professional)?
Start by drawing up a basic budget for yourself. First, you have to determine what type of income you receive and what expenses you have every month (these are things that you need).
Think about all of your expenses - water and electricity bills; house and vehicle payments; house, vehicle and personal insurance; groceries; petrol; cell phone expenses, etc.
Question 2: What are you saving for?
These are things that you want. For instance, I want to save enough to buy a new house.
Question 3: How much money do you need to earn to be able to afford these?
In other words, to cover your expenses and reach your long-term dreams and goals? Remember to take taxes into account as well.
Question 4: What will your expenses on the property be approximately?
Refer to the article "Taking the leap? Know what you are getting yourself into" for more information.
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Author: Machelene Joubert