When to get a loan

[BeautifulMadness]

Now my Dh has been at his nearly 12 mths ( yaaaaay) he is a draftsman for metricon.

im dying to build my own house im sick of living in someone elses home.

Now he earns just over 40$ ( getting a possible raise in june) he also does overtime aswell.

when would it be worth for us to look into a home loan. Dh gets 3% off plus they have the 42$ for first homebuyers. if we did it this yr wed be saving so thousands.


any ideas?

[Aimz]

I would suggest going to a credit union/bank/lender and finding out your financial situation. You can get a pre-approval which will give you an indication of how much you can spend on a new house.

[Nelle]

It's not a bad time to be borrowing - maybe see what a Mortgage Broker thinks?

[BeautifulMadness]

cause i m thinking by the time we go through the hoops u need to go through, its not a bad idea to investigate ya know? i know what my hubby will say we cant afford it yet we can afford $1,080 a mth for rent lol

ive picked the block of land id like and the house lol

[Aimz]

Here are a couple of examples of how much your loan repayments will cost. Arm yourself with information!!

Based on an interest rate of 6.84% over 30 years:

$250,000 home loan would be $1636 per month
$300,000 home loan would be $1963 per month
$350,000 home loan would be $2291 per month
$400,000 home loan would be $2618 per month

You need to be conservative when borrowing and allow for at least a 1.5% increase to your loan and make sure you would still be able to make your repayments. The lesson I learned (too late!) was NEVER borrow to your full capacity - leave room to move in your budget in case something happens.

If you've picked the land and the house you should have a rough idea of the end price (providing you don't go over budget). So use that price and work out the repayments (most bank websites have home loan calculators) and see if you will be able to manage.

Good luck!