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Buying a House

THINKING MONEY!
If you're like most people, buying a house will be the biggest purchase of your entire life.
You need to be able to keep up with the mortgage payments for the life of the mortgage, which may be 20 or 30 years, so you really have to look at your budget and also determine how secure your income will continue to be in the future.
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If you look at a typical mortgage repayment schedule, you will notice that for most of its life you will be repaying the interest and not the principal. Some lenders will apply any additional payments made to the interest and not the principal meaning that your total payment will be the same even if you find yourself able to pay extra funds over the life of the loan. What you want, is to have these payments applied to the principal so before you make any additional payments you need to call the mortgage company and find out their policy.  

You also need to determine and understand the lenders conditions for terminating a mortgage in the event that you are unable to keep up with the payments and wish to sell your property.

Bear in mind that property values in Barbados continue to appreciate tremendously so your property, provided that you didn’t pay a lot more than it was worth in the first place will quickly become a profitable asset, worth much more than you paid for it to begin with.

Sooner or later you will need to talk to a mortgage lender, whether it is the Bank, Credit Union or other agency. Rather than wait until your dream house is on the market, the best time to visit your lending agency is now. They will asses your commitments and advise you on the size mortgage you can afford. Some may have fixed interest rates and some variable, some slightly more or less etc., As long as you have the time, you should check with a number of these agencies to get the best deal. Bear in mind that variable interest rates may either increase during the life of your mortgage causing you to pay more or less, and that while some agencies require a higher percentage down payment, the mortgage payments are less than those with lesser down payments.

You also need to know of the commitment fees, the lawyer’s fees etc. that may or may not be financed as a part of your mortgage.

LETS FIND YOUR DREAM HOME
Once you have gotten past this it’s time to find your dream home.

Your next step must be to think and make notes on what you require in a house:- How may rooms do you need, the size of the rooms, yard space, wheelchair accessibility, entertainment area, yard space, location – would you prefer it to be near your workplace, away from a main road, in proximity or distanced from social areas like churches or playing fields, do you have large equipment which may need to be stored on premises, are you prepared to spend any money renovating the house, is it fitted with hurricane shutters or burglar bars, how many stories etc.

I could easily write two pages of requirements. It is best to consider your specifics before starting your house hunting exercise. Even with all your requirements in hand, and your determination to find your dream home, the process can be extremely frustrating.


YOU NEED A GOOD REAL ESTATE AGENT
It can take several months, and usually requires many visits to several houses to find the right one. Prices may be highly inflated by the seller and you as a buyer may overlook some very basic pitfalls in your zeal to find your new home. You really need to find a real estate agent who will work hard for you, and who will work well with you.

Click here for my personalised service.

Esther