One of the most crucial parts of getting a house is coming up with funds for a down payment. Unfortunately, not everyone can cover such a huge amount, especially with the current economy and wage stagnation. For most, it would take years before they can save enough for a down payment alone.
That’s why it’s important to make a sound decision before deciding on anything. So, without further ado, here are a few of the most common misconceptions about buying a house and the truth behind them.
Misconception #1: The down payment is the only fee that you need to pay
If only it were that easy. Unfortunately, the down payment only represents a portion of your expenses that you must cover to close the deal. While the actual amount that you need to pay can differ, a few other expenses that you need to consider are the closing costs.
The closing costs refer to any fees that you incur when closing the deal. It includes the appraisal fees, and transfer tax, too. A few other fees also include documentary stamps tax, registration tax, loan fees, and notarial fees.
Misconception #2: It’s easy to save up for a down payment
If you compute it in your head, coming up with a couple hundred thousand pesos may seem easy. But unexpected expenses can happen, which can make savings quite a challenge. So, on every payday, try to save at least 10 percent of your salary and put it in your savings account.
To make it even easier, you can open personal savings account in the same bank that handles your paycheck. It’ll allow you to set up an automatic transfer from your salary to a specific personal account every payday. This way, you can set aside the money automatically before having the chance to spend it.
Misconception #3: Your paycheck is more than enough to cover the down payment
Although a house for sale in Tanza, Cavite, is quite affordable, there are times when a person’s paycheck still won’t be able to cover the expenses associated with getting a house. So, before you decide on getting one, it’s best to assess your finances and see if you’re capable of purchasing a house.
To ensure that you won’t have any problems, it’s always advisable to do a lot of overtime to get an extra income. Having a part-time or freelance work is also another way to beef up your savings for your future home.
If you ever decide on doing some freelance work, you need to make sure that you keep your consistency when it comes to delivering results. Doing so will help you establish a good reputation online, which would, later on, help you find more clients.
Although it’s challenging to get a house, it doesn’t mean that it’s impossible. There are so many options you could consider, whether it involves taking a mortgage or a loan. It’s going to be tough, but with hard work and determination, you’ll eventually get there.