Everyone wants to eventually own a nice big home to grow old in, and to have as an asset, and everyone is anxious to get on the property ladder. However, over-facing yourself with a lenient mortgage on an expensive property is not the way to reach your goals quicker. Here’s why.
It’s Typical to Overreach
Nowadays, everyone wants to save up the biggest deposit they can, and get the biggest and most expensive house they possibly can. This makes sense for a lot of people, but can also be a little dangerous. This is what caused the 2008 financial crisis, too many big loans and mortgages given out to people who couldn’t afford to pay them back, or would take years and years to do so.
While there’s a lot of checks and care taken to make sure that mortgages aren’t granted to people who can’t pay them back, circumstances can change, and if you’re a person with a changeable career, or a tumultuous income stream, maybe going for a huge mortgage isn’t right for you.
Don’t Want to Over-Face Yourself
No one likes living under a huge pile of debt. It’s inherently stressful, and can make you very anxious. Trouble sleeping and impeded quality of life isn’t a surprising reaction if you’re struggling to make ends meet all the time. In this regard at least, you should definitely not be going for properties way above what you can comfortably repay.
Pay Off Your Mortgage As Quickly As Possible
There’s one response to dealing with a big, lengthy mortgage repayment plan, and that’s to renege on the set payments, and start paying back as much as possible. Obviously, you need the mortgage company’s permission to do this, but if you can get that, you can start making biweekly payments, or sell the property and downsize. Debt is stressful, and limiting, so anything you can do to decrease yours is going to be a good idea.
Judge the Atmosphere Right
Right now is not a good time to be buying a house, especially as a first time buyer. It’s a real sellers’ market. You need to be able to gauge the market if you want to get a mortgage on a new property. Really, what it comes down to, is that there’s no replacement for quality research, and knowing what you’re talking about.
Quality research is great, and really easy with the internet nowadays, but on top of that, you also need a great estate agent to point you in the right direction. Without the right estate agent to guide you, selling and buying properties becomes infinitely more stressful, and that’s something everyone wants to avoid.
Moving house is already rated as the third most stressful life event, so anything you can do to lessen the strain is handy. Research and finding the right estate agent is the best place to start when it comes to making sure you’re not biting off more than you can chew.