Mortgage mishaps and how to avoid them
Aug 18, 2017 Home Loan
Buying a home is one of the biggest investments for most of us. The home loan is also the biggest debt for most of us. Taking the home loan and choosing the right plan that suits the requirement of the applicant is a time taking process and needs more consideration. One cannot afford to do mistakes. A mistake can cost the buyer heavily in future.
Your home loan or mortgage should not be a burden to you, rather it should make you feel secure of your investment.
What is mortgage mishap?
Mortgage mishap is the one where you struggle to pay your monthly instalments. Failing in making payments for a long time without notice can make you leave your home. You don’t have any legal right to the property if you fail to make payments.
How can you avoid it?
1. Set up an extra corpus fund. You don’t need finances to pay for the instalments but also to pay the extra charges and fees. If you have sufficient cash in your saving then you will be able to meet these demands in times of cash crunch.
2. Control your expenses. Limit the way you spend money which also means you will have to keep a check on your lifestyle.
3. Ask the expert for the advice. Buying the home and making the financial investment can be troublesome. An expert can guide you in right direction by finding ways to help you save as well as make the payments in time.
4. Ask for forbearance period. If your credit score is good then you can ask your bank to relive your missed payments or give you an extension?
5. Take advantage of your stock and mutual funds investment. These investments are done to help you in times of cold waters. Cash them and these can help you in making your mortgage payments without any trouble.
Things to avoid while struggling for mortgage payments:
Your home loan or mortgage should not be a burden to you, rather it should make you feel secure of your investment.
What is mortgage mishap?
Mortgage mishap is the one where you struggle to pay your monthly instalments. Failing in making payments for a long time without notice can make you leave your home. You don’t have any legal right to the property if you fail to make payments.
How can you avoid it?
1. Set up an extra corpus fund. You don’t need finances to pay for the instalments but also to pay the extra charges and fees. If you have sufficient cash in your saving then you will be able to meet these demands in times of cash crunch.
2. Control your expenses. Limit the way you spend money which also means you will have to keep a check on your lifestyle.
3. Ask the expert for the advice. Buying the home and making the financial investment can be troublesome. An expert can guide you in right direction by finding ways to help you save as well as make the payments in time.
4. Ask for forbearance period. If your credit score is good then you can ask your bank to relive your missed payments or give you an extension?
5. Take advantage of your stock and mutual funds investment. These investments are done to help you in times of cold waters. Cash them and these can help you in making your mortgage payments without any trouble.
Things to avoid while struggling for mortgage payments:
- Do not take additional loan or funds to pay your mortgage. It will put you at a greater risk than before. You will also have two loans to repay.
- Do not run away from the situation. It is better to talk to your lender and explain him the situation clearly. They can help you in finding an alternative or give you a few months of extension.
- Keep all the terms and condition of the home loan documented with you.
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