7 Ways to Choose a Mortgage, You Need to Understand the Mortgage that Fits Your Needs

Finding a loan that suits your needs and budget is one of the tips for choosing the right mortgage. If someone wants to buy or build a house, the bank will give them a Home Ownership Credit (KPR).

To avoid problems in the future, finding the best lender is very important because buying a house is a long term issue. You should also know some tips about choosing a mortgage before buying a house.

Do you know what they are? Immediately, see the review to the end!

Make sure you can afford to pay

The ability to pay is the main thing to pay attention to before you start taking mortgages. If your finances are still not very stable, don't rush to take a mortgage.

You should set aside thirty percent of your income to prepare for taking a mortgage. You have to pay mortgage installments every month until it's paid off. Therefore, before deciding to take a mortgage, you must prepare the best possible money.

Home survey

Don't be lazy to compare house market prices one by one. Choose according to ability. Make sure the location to be chosen must also be considered. Factors such as the possibility of flooding in the area and the distance from the location to the office. See residential neighborhoods, public transportation routes, and public facilities in the vicinity.

Carefully review the developer's credibility

In addition, to choose the right mortgage, do a thorough research on the credibility of the developer from the start. Thus, you don't need to be fooled by excessive promotions which will only have a negative impact in the future.

Therefore, do the selected developer's track record when selling properties for the previous several years. Apart from that, you can see the achievements, vision, mission, and credibility of the developer through their official website or social media.

Research the mortgage program provided

After checking the credibility of the developer, also check the mortgage program provided. This is done to avoid the possibility of prices that do not match the actual condition of the house. Also, check if the house needs a lot of renovations, and ask about the history of previous repairs.

Determine if repairs or renovations are needed

In some situations, price information contained in advertisements may not always be true. Don't let after you buy, many parts need to be updated.

This is definitely very risky, especially if you don't prepare money for unexpected needs. To get a better understanding of the condition of the home, don't forget to ask about repair history as well as determine if renovations may be needed.

Calculate the amount of the credit ceiling

To make it easier for banks to meet your needs, it is very important that you know your credit limit. The ceiling usually refers to the maximum permitted financial transaction limit.

Conversely, the mortgage ceiling is a fee limit for certain transactions. This is made to reduce the possibility that the debtor will not be able to pay. 

The way to calculate it is to subtract the amount of down payment you paid to the bank for the price of the house. 

In short, the mortgage ceiling is the total debt you have to pay off. For example, you choose a mortgage house with 30% interest and a total price of IDR 400.000.000. You have to pay a down payment of IDR 120.000.000, so the bank will give you a mortgage ceiling of around IDR 280.000.000.

Verify the tempo of the application with the key handover

 Each bank usually has its own policy about when to apply for a mortgage. Submissions usually take between two weeks and one month. Therefore, be sure to ask how long it will take so that you can meet the additional needs.

In addition, when choosing a house that is ready for habitation, be sure to ask the developer when the key handover will take place. So, make sure your rights as a buyer can be fulfilled and don't hesitate to raise objections if the time for placing the house does not match the initial agreement.

Are you now more motivated to get a house immediately after reading the advice on choosing a mortgage above? Hopefully the above writing is useful, yes!