16.4.08

To dream for a house, impossible?

Owning a home is one dream many people aspire for. To many, a home is a dream fulfilled, success if you will, a sanctuary of comfort and peace. But is it really?

How does a person or his family know if they are ready to own a home?

The most essential and basic question to ask is, can you afford it? Do you have the ability and/or the capacity to buy a house or take a mortgage from a financing institution which will help you finance the acquisition. Because this is what it is really about.

And what do the financing institutions look for when evaluating an applicant seeking for a housing loan. Common sense tells me, these are some of them:

  1. Is the applicant qualified to take a loan?
  2. Does his personal financial condition reflect a positive credit history after verification?
  3. Is income steady and consistent, can accommodate payment or amortization for the amount applied for.
  4. Does he have the integrity to pay back the loan year after year.
  5. After verification, does the applicant’s assessed resources prove that he is worth what he says he is?
  6. Can he afford a down payment? How much down payment can he afford?
  7. What is his or his family’s monthly housing expense? Can he afford the mandatory debt servicing fee that automatically comes with a loan?
  8. How long has he been on he job? What is his earliest retirement age? History of illness?
  9. What is his age? How many dependents does he have? School age?
  10. What other financial resources does he have? Does he have a health or a life insurance?
  11. How much does he have in savings? A personal retirement fund aside from the social security provision? Do you have other excess cash?

With these questions I am sure there maybe some individuals wanting to take out a loan who’d have some issues up their sleeves that they definitely want to hide.