Whether you are buying a home for the first time or the tenth time, real understanding of mortgage is extremely important. Very rarely people pay in cash when buying a property. Majority of buyers go for a home loan or a mortgage. Hence, before the deal make your senses clear about a mortgage plan. The first thing to know is, you can get a loan based on your salary. In no way can you get a million dollar loan if you have a few thousand dollars as your monthly income. Hence, do not expect a fortune from the mortgage company. Select an amount that will be easy for you to clear later on.
Analyze carefully whether it will be convenient for you to clear the mortgage amount or not. Calculate your fixed costs and then estimate your loan clearing capabilities. Be honest with yourself the entire time. Fooling yourself with the myth that you will clear any amount of mortgage is wrong. Realistic approach will make things far easier. According to a study, your housing cost must be 32% less than your gross monthly income. Mortgage is not a short term issue; hence many things need to be considered. If you do it in haste then it can lead to great problems.
Hence, do your homework, do all the calculations. How much extra amount can you afford every month to pay as the mortgage will decide what type of property your buy. Even if you have savings from before, calculations are needed. Anytime in your life there can be a point where some unprecedented expenses will arise. Those situations also need to be considered. Mortgage can be a real night mare if you are not able to clear it on time. Hence, do the hard work before so that you do not suffer later on.