Buy a house despite having a low income

Buy a house despite having a low income

Buying and owning a home is the dream of all people, young and old. Being sure not to suffer an eviction and never having to move house at any moment, it definitely helps in leading a more quiet and stable lifestyle. However, to buy a house nowadays is not easy; in most cases, it is necessary to have a capital aside and a sufficient income to meet the mortgage payment. But if you are careful and patient, buying a home is possible even if you have a low income. Here’s how.

First, you need to be good payers. In order to make any major purchase, it is crucial not to have had protests for non-payment or for substantial delays. If you have these problems, it is necessary to improve your situation by providing administrative to pay all outstanding debts. After that, draw up a financial plan showing how your current income, however low, is at least reliable and able to cover all the debts, in addition to the loan for the purchase of the house. Banks usually do not accept mortgages that exceed 25% of income.

No matter what your income is, it can be yours

No matter what your income is, it can be yours

Save your money for a down payment. You might not be able to save enough, but you have to do as much as possible. Aim to have at least 5% of the total cost of the house available to make a deposit to the bank or to the owner of the house. Thanks to a down payment, you can prove to the bank that you actually have the resources to purchase the property; while learning how to save money, help to cover the costs of the mortgage.

Go to a local patronage to find out if there are programs, through which it is possible to obtain low-interest loans, or allowing to benefit from special discounts for those who have a low income. Go to a bank to see if you can get a pre-approval for a mortgage before you start a house hunting. In this way you will know what kind of home orient their research, from the time that the bank will communicate with you to inform you what price range you can aim for.

Look for a house that you can actually afford to buy. Consider what you earn in a month and how much you can afford to spend on a mortgage. You can use calculators to find out how much depreciation would amount to interest rates and the amount of the mortgage. You should not buy a home that costs more than four times the net annual income.

By +Nikos Kontorigas

About Nikos Kontorigas

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