Using a mortgage calculator is a great way to find out how you will need to borrow. Read about some home buying and money saving tips here.
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Saving early is always a good idea. It’s easier to afford property when you have been planning the purchase for a long time. Before you start saving, use a mortgage calculator to set your end target. We’re here to help you answer some of the big questions regarding how to save with a view to purchasing property.
Q: How do people manage to save enough money to buy a house?
A: There are a few golden rules to follow when you need to save. The first is to make a budget. Often, the best way to save is just to cut back on unnecessary expenses. That daily takeaway coffee, fancy salad and second round of drinks might just have to go. Get your priorities straight. Once you have worked out your budget, think about a good method of putting a regular sum of money aside each month.
Q: If saving by cutting back is too hard, are there any other ways of saving money to purchase property?
A: If you need to have some discipline imposed upon you, you can set up an automatic standing order in order to put aside the same amount every month — a realistic portion of your monthly salary can be placed into unit trusts or a high-interest savings account, for example.
Another method is investment. If you get a small inheritance, get some sound advice and invest. You can even invest little by little and watch your money grow. Make sure that you have done your research and that you spread your risk.
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If you want to get on the property ladder very quickly, and you haven’t started saving yet, consider buying property with another person, perhaps a family member, a friend or a partner. When two or more people are contributing to the deposit, the process of saving can be much shorter. This is because the mortgage loan required is likely to be smaller when people are borrowing together. It might be a good idea to find a guarantor or participate in a mortgage guarantee scheme.
Q: Is there anything that prevents someone from getting a mortgage?
A: There are many reasons why people are refused a mortgage. If you have a lot of debt to clear before saving, your chances of landing a mortgage are much slimmer than if your credit history is clean. It’s a good idea to start looking after your credit history as soon as you decide to save, but ideally before. This way, getting a mortgage will be a much smoother process.
Q: Why use a mortgage calculator before meeting with potential lenders?
A: Typically, a mortgage calculator, like the one on Jumia House will give you all the basic information you need to decide whether your expected deposit is realistic given the repayments you can manage. It will give information about loan to value ratio, the initial interest rate and whether the rate will vary according to market fluctuations. It will also show you the overall cost for comparison, the basic fees, the expected amount for monthly repayments, and information about how long you will be making these repayments. You will be able to compare different kinds of loan using a good mortgage calculator. Furthermore, this information will prepare you and help you get a great deal from your lender.
Learn about getting a mortgage loan
Shop around for your mortgage. Have a look at the property available online before meeting your lender so that you have a figure in mind and know how much you want to borrow.
When you’re finally ready to meet your potential lender, make sure that you have prepared questions for each broker you approach, and compare how much you will have to pay back each month. Make sure that the repayments are comfortably affordable for you. It may be that increasing your deposit even just a little can bring your monthly repayments down a great deal.
After having shopped around and got all the information, many questions are likely to arise. Do you want a fixed rate? What kind of expectations are realistic? Will you have to compromise? Will you need to get your parents to help you out? Answering these questions means that by the time you are ready to sign the agreement to take out a mortgage loan, you’ll be armed with all the information you’ll need in the future and ready to sign all the paperwork related to the home you are about to purchase!
Jumia House is an online property marketplace that offers sellers, buyers, landlords and renters a secure and easy-to-use platform to find or list properties online. For feedback or more information visit: house.jumia.co.zw or follow us on Facebook, Twitter: @JumiaHouseZW or email to service.house@jumia.co.zw or call 04 740940 or 08080181 (Toll Free).
