Owning a house to live with your family or partner is one of the greatest achievements for many people. As much as homes are expensive, people use different methods to own one. If you are planning to buy a home now or in future, it is thus, crucial to understand the best ways you can opt to use.
Top best ways to purchase a home
While this option is rarely used due to the value of homes, it is a viable project for people who earn a decent salary. However, it will require a lot of sacrifice for saving to be possible. For a working couple, they can live a low profile life for a couple of years and save for the house. Cash buying is the best process as one is left without any debt obligations to struggle with.
Using a mortgage
Mortgages are limiting to people working for the government or well established private companies. However, most people may be locked out of benefiting from a mortgage due to the nature of their work. Those working under short contracts can hardly benefit from this the house mortgage since they do not have a job security. A house mortgage loan goes for many years, and if one loses the job, the financier can claim the home to recover their money.
Using normal loans
Any person with good credit score and a stable source of income can benefit from normal loans through different financiers like the banks and SACCOs. The beauty about the normal loans is that they may not care what you will do with the money as long as you honor the repayment plans and the interest rate. Furthermore, they do not dictate on the duration or repayment like the mortgages. Most financing institutions have good lending rates which are affordable to most people.
Buying a new house after selling the old one
If you own a home which is now old or at a location, you do not like, then one can sell it and buy a new house. The process may require top up of some money or leave you with surplus depending on the price of the new house.
It is crucial to plan well before selling your old house to avoid getting stranded during the purchase of the new home.