House buying tips

Read on and get more house buying tips that can help you make wise investment decision.

11:22 20 July 2013

• Know what you can afford. When you’re applying for loan, lenders will typically give you a ballpark figure on how much you can borrow. Do not automatically grab it.

Determine first if you can afford to repay it. Consider the kind of lifestyle that you prefer, the amount you can afford to pay for mortgage every month, the interest rate, etc.

If your calculation says that you cannot afford it, look for smaller house that will fit your budget. Remember, this is a 25-year commitment thus, it’s important to ensure that you make the right decision.

• Boost your credit score. Having a great credit score is your ticket to getting your mortgage approved and in getting lower interest rate.

So, ensure that you settle any outstanding debts. Also, check your credit files held at CallCredit, Equifax, and Experian to ensure that they are error-free.

• Check out the neighbourhood. Buying a house is a lifetime commitment. It makes sense to check the neighbourhood before you finalise the purchase. Get the feel for the area by visiting at different times of the day.

Are the cars clean and well-maintained? Are there reported crimes like robberies in the area? Who are the people who live next door?