Make a note of additional costs apart from mortgage loan.
Don’t think there will be only one loan payment to pay after buying the villa. Of course mortgage is the major payment you are going to do. There are other small costs that are associated that you need to pay from your salary at the end of every month. One such payments are electric bills and another important bill is water bill. If these above two are monthly then the annual cost is there that is annual tax payment to your local municipal corporations. Annual tax will be hefty that cannot be overlooked. Property insurance is one more payment that need to renewed annually. Again the cost is high. Last but not least three will be monthly maintenance charges that need to be given to the associations. Now ask yourself whether can you pay all these charges if so try searching your dream villa.
How much mortgage loan you can afford?
Are you too much busy on searching your favourite villa to your family? Hold for a minute have you thought how much you can afford to buy villa? Can you buy 2 bed room villa or 3 bed room villa? How big villa you can buy: 2000 square feet or 3000 square feet. Don’t go with a rough calculation because after all the hard effort put for bargaining your energy and time will get wasted if you come to that you are not eligible for specific amount of loan. Therefore go back and try mortgage calculator where put the right rate of interest that need to be paid, annual salary that is getting credited every month and check the bank valance for how much you can pay the down payment. After all this calculation you can easily come to know how much loan you can raise for your villa. Based on that not only you can search but also you can bargain decently. Many times we have seen after spending days and months and done all the hard work of bargaining people will drop from buying the villa because of limited knowledge about the eligibility of loan criteria. Check with sales team of two to three banks and get free consultation on how much you can afford the loan as per your salary and then start searching the villa.