Mortgage Loans: Getting Past the Hesitation
Most of us dream of having a home of our own and a mortgage loan is seen by many as the fairy making it all possible. But there is a dark side to it as well.
This dark side is easy to guess once you start to seriously think the matter over. Any debt is a burden, and the home mortgage loan is likely to be your largest debt ever. The prospect of the heavy bills you’ll have to pay each month can very easily make you change your mind and give up the ambition of owning your own sweet home – especially if it’s the first time you’re buying a home.
Questions are likely to accumulate and harrow you – all, or most of them related to the fear of not being able to raise the money needed to keep up with your payments. The voice of the pessimist in you will sound such worries as losing your job or seeing your earnings dwindling as a result of the crippling bills, to the extreme scenario of becoming homeless.
Still, if you can calm down and take an objective perspective on the situation, you might realize that not all of these worries are really justified. It is unlikely that all people who have managed to pay off their debt possess outstanding financial skills far beyond what you can attain. Furthermore, if the bank decides to grant the loan to you, they must have some reasons to believe that you’ll be able to pay it.
Ironic as it may sound, an objective analysis of your worry will reveal that you’re afraid of losing something you don’t have at present. In other words, you’ll be back where you are now. Moreover, you should not think that the lender is so eager to resort to foreclosure. They don’t really need a set of bricks, they have much more to gain if you can redeem the mortgage. Consequently, they will usually be willing to consider some changes to the terms, so that you can keep up the payments.
Conceptually speaking, there is not much difference between the monthly payments redeeming your mortgage and the rent you are paying now. And since you are considering taking a mortgage loan, it seems sensible to conclude that you have no problems paying the rent. The one huge difference is that, at the end of it, you’ll be the full owner of your home – unlike now, when your landlord is unlikely to come to you one day and say the apartment is yours.
Instead of worrying, it’s much better to sit down and count your money before you start the process of applying for a mortgage loan – the money you have now, and the money you expect to be earning in the future. It might also be a good idea to seek the opinion of a real estate agent, whose experience can be quite helpful in deciding whether you should take the loan, and what sum you can afford.
At the end of this decision process, the mortgage loan might again look like the fairy that can bring you the home you’ve been dreaming of – or at least one closely similar to it. It’s not magic, though: it’s all a combination of analysis and forecasting.