Buying your very own home is such a big boss move. You can be twenty, thirty, or even fifty-five and it still be considered a boss move. I guess buying your own place is considered a universal achievement of some sorts. No matter where you go in the world, it’s a common dream for all. That just goes to show that land isn’t cheap anywhere though!
So if you’re planning to buy a house or a commercial property, good for you! Take note, I just said planning. That means with or without money, you want to make something your own. And that’s really great! Not the part that you don’t have money but the part that you actually want so bad, you would consider dreaming of it even when circumstances are not favourable (read more). That’s at least a good starting point.
Now, from this point forward, all you have to figure out is how you can accomplish your objective even with a laid out handicap. It’s all about identifying what you want to achieve and the factors that are preventing you from achieving them. In this case, it would be:
- You want to acquire your own property.
- You don’t really have the money for it.
Once you have identified what it is that you want to achieve and what it is that’s preventing you from achieving them, then you can move on to finding the right solution. For this specific problem, that would be getting a mortgage loan.
What Is Mortgage?
Have you ever wondered how many normal salarymen with little to no source of extra income manage to move into a new house? Have you ever wondered how young professionals, who have more or less just passed the first quarter of their lives, manage to afford themselves a new condo unit or bachelor’s pad?
Well, for people who can’t afford to buy property in cash, there is still one more option: Loaning the property through a bank or financial institution. This is what we refer to as a mortgage loan. If you qualify for this type of loan, you can start living on a property of your own. What usually happens is that a third party (bank or financing firm) buys the property for you and bonds you in a long-term contract. You will pay them in instalments, often on a per month, quarter, bi-annual, or annual basis.
Most firms would have the title of the property named to them. However, the transfer will be processed soon after you have paid off your debt. And at that time, you will assume legal ownership of the property – with all the right to sell, lease, pawn, or whatever it is you want to do with the house or land you bought. You can check out more info here: https://www.investopedia.com/terms/m/mortgage.asp.
This may sound too good to be true, right? Needless to say, all good things come at a price. In this case, that price comes in the form of interest rates.
Since a mortgage loan is often long term, with the least number of years being 10 in most cases, it can accumulate a great deal of interest. Most banks and finance agencies would charge annual percentages of the loaned amount. This can sum up to a third, half, or even the full amount of the money you borrowed.
Does this mean it’s not a good idea after all?
Well, it is still a good idea to mortgage a property! After all, if you come from humble means, it is definitely the kind of assistance you’ll require. Also, even if you don’t mortgage a property, chances are that you are going to lease one indefinitely. And rent is never to your benefit. You’re paying for something borrowed; something that can never be yours.
The thing to note with mortgage loans is that you have to partner with the right bank or firm. If you’re looking for mortgage brokers in Northern Ireland, for example, you can browse many potential companies to partner with online. Many companies offer competitive rates for people who are too concerned about high interests. If you’re lucky, you can even get a deal for as low as 10 or 15 percent per annum. Then again, you should worry about passing the initial screening first.
Anyway, change is always going to make you feel a bit edgy – and so will commitment. But if your mind is set on buying that property you want, then you might as well push through with your decision. If you work hard enough, that loan will be paid off in no time!
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