Terrible Mortgage Calculation Mistakes Every Kenyan Potential Home Owner Makes
By Brian Rono
It’s difficult to buy that home for sale somewhere in a leafy suburb of your choice, possibly without taking a mortgage.
With the median price of homes in major towns around Kenya shooting high on daily basis taking a loan to buy that house is the only option for most of us who want to own.
Whenever one is talking of large figures of this rate in millions, mainly, we will make that mistake when trying to figure out how much cost of a house you can afford and more importantly, how high a monthly mortgage payment you can handle can cost you big time.
Here are the mistakes to avoid. Do not forget making that comparison-shop.
Not knowing your credit score
Your credit scores impacts on the interest rate you’re likely to receive on your loan.
What you didn’t know is; that interest rate can mean a difference over the life of your mortgage.
It’s tempting to give yourself a inflated interest rates when making use mortgage calculators to estimate your monthly income.
But you may not be able to secure a favorable percentage rate if your credit score is poor. This means your estimate could be very different from your reality.
Not Making a comparison-shop
The major blunder that most of you make in that rush in attempt to get a mortgage which is directly tied to the interest rate you get.
Forgetting to make a comparison shop will definitely crumble your dream of getting the right lender. Not all lenders will give you the same terms on a loan.
Failing to account for all costs
Forgetting to factor in additional costs, along with all other expenses associated with home ownership, for example, taxes etc. can add up to a big calculation mistake.
Not learning about the whole process ahead of time
Henceforth, it’s important that you get to understand the mortgage process from start to finish. Read about mortgage industry; talk to real estate agents, attorney and financial planner.
Taking the time to inform yourself first is the best investment you can make in this entire process.