Are You Ready To Take Out a Home Mortgage?
There are so many factors to consider when taking out a home mortgage. In fact, there are lots of questions on your mind and the answer is never easy. But the most essential factor in any mortgage is the money you have towards the down payment of purchasing the property.
Knowing the current lending rates and true market value of a property is also extremely important. All these are just financial factors, but you also need to justify your personal disposition. Some of these questions may include:
Do you have a stable job?
Are you ready for a commitment?
Will you be able to pay your monthly amortization?
Answering these questions will give you the means to determine if you are indeed ready for a home mortgage. In addition, initial capital is a big part of the home buying process. You need to understand that most lenders will require you to pay 25% or more of the total value of the property. In fact including the registration fees etc, you should budge another 8% of the cost. I.e. You need approx. 33% of the purchase price to cover the initial 25% deposit plus fees.
When buying a house, you need to know current interest rate, and since it always fluctuates – it’s best to take advantage of low interest rates and try to lock it in for an extended period.. Some buyers who are anxious to buy a home while interest rates are high will most likely take out a short term loan, and hope the interest rate will move down after that. To state the obvious… A low interest rate will keep your mortgage payments lower and allow you to amortize faster.
The value of property rises as per supply and demand, typically, when there is an economic contraction or excess supply properties cost less. While in a booming economies and tight supply such as we are currently witnessing in Dubai, we see prices rising. There is an estimated 45,000 new units to hit the market during 2014 and 2015. However Dubai currently has a very strong economy which encourages immigration.
Before you consider taking a home mortgage, it would be advisable to consult a mortgage broker in Dubai. They are in the best position to give you a sound advice and provide you several options according to your current circumstances. Always remember, taking out a mortgage is a very big commitment – you need to be both mentally and financially ready.
If you’re planning to take out a mortgage in the UAE then you might want to seek out the help of a credible mortgage consultancy firm, or just browse for the best options. There are more than 300 mortgage products in the market, each one designed for a specific profile client. Compare and choose using this link: mortgage calculator in Dubai