Think before getting a home loan for the first house
"Home" is the 4 factors for living. Therefore, when having a job stable income many people want to fulfill their dreams by having a home. The way of buying a home, often ask for a loan with a commercial bank which the special feature is that the installment period is longer than other types of loans up to 30 years, meaning that if you decide to buy a house, you have to pay for the installment
Therefore, the decision to get a loan for a house, importantly, if it is the first house, must think carefully. Because if something goes wrong, it may take more time to solve the problem than you think.
1.Investigate financial status
"Income" and "expense" will determine the ability to pay off debt. Which, according to financial planning principles, should have every type of debt, each month, a maximum of 40% of incomes, such as a salary of 45,000 baht. Should have a total debt of no more than 18,000 baht. Therefore, if there are other debts such as car debt, credit card debt That must be paid in each month May result in a reduced home loan amount.
For example, a car installment of 6,000 baht per month, paying credit card debt of 2,000 baht per month (totaling 8,000 baht) means that there is the ability to pay home installments by another 10,000 baht (18,000 - 8,000).
2.Buy a house at a reasonable price
When knowing the financial status and ability to pay off debt each month Will know which price to buy a house to make it not too burdensome. In which the basic principles for evaluating a loan amount of a commercial bank are calculated from the amount that the borrower can pay in each installment in the ratio. The ratio of installments per installment is 8,000 baht to total debt of 1 million baht. That is, if able to pay 8,000 baht per month, the bank will lend 1 million baht. If the installment is 16,000 baht per month, the loan is 2 million baht.
Maximum loan amount = (1,000,000 x Ability to pay in installments each month)
For example, with the ability to pay installments of 10,000 baht per month, a maximum of 1,250,000 baht is possible to buy a home. However, this is a rough calculation. If you want to know how much you can borrow, you must consult with the bank. Because how much you can borrow depends on other conditions, such as the repayment, interest rate or with a co-borrower as well or not, etc.
3.Placing a lot of down payment
When planning to buy a house, it is necessary to have about 5-20% of the house price. The remaining money to go to ask for a loan with the bank. The remaining money to go to get a loan with the bank, which has many people who choose to pay the down payment is the least. The advantage is that you do not use a lot of money yourself. The disadvantage is that there is a high-interest burden, so if possible, prepare money for the down payment. As much as 20% or 30% of the house will help save interest rates.
For example, buying a house for 1,500,000 baht, using a 10% down payment (150,000 baht) means that you have to borrow from the bank 1,350,000 baht, assuming that paying interest at 6% per year, 25-year installment would have to pay 8,698 baht per month and total interest of 1,259,421 baht. But if paying a 30% down payment (450,000 baht) means having to borrow another 1,050,000 baht, will pay 6,765 baht per month and pay interest of 979,548 baht.
When the money to the down payment for the house will be a lump sum level of hundreds of baht, so if the money is prepared before buying the first house will ease the burden of expenses. The method is the salary is divided into investments, such as investing every 1,000 baht per month with an average return of 7% per year. After 10 years, the money from the investment is approximately 173,084 baht. In practice, this lump sum can be placed as a down payment for a home. But it is considered a low level. Therefore, some money may be added to increase the down payment.
4.เIncrease installments per month
Early working period salary is not much, they should choose the longest installment period, for example, 25 years or 30 years, to reduce the burden of expenses. But whenever the salary increases or has extra income, the monthly installments must be increased. May use type of step method such as this year, installments 6,765 baht per month, next year installments 7,765 baht per month, next year installments 8,765 baht per month, etc.Will help save interest and release debt faster
Thinking of having a house can be a big deal for many people. Some people may have a crush on how to begin. Or worried that you can't get a loan but if careful planning is a step and when ready having a house will not be difficult anymore.