If you have decided to buy a house and you are looking for a mortgage, you need to consider the following financial aspects of your situation and future plans:
- Annual household income. This is a basic calculation to make. Also, think about the possible changes to your income and repayment process.
- Down payment. According to current rules, you need to make at least a 5% first payment for taking out a mortgage. The amount of available mortgage is determined by this down payment.
- Amortization period. A long period gives you the possibility to make minimum payments. However, shorter period, while requiring higher payments, makes it possible to pay less on interest.
- Other expenses. Consider house related expenses, such as insurance, taxes and maintenance that you will have to pay each month.
Before making your final decision, find some more information about the home buying process here: Tips to buy a house.