Assessing the financial situation
The first step is to establish your financial standing. You must not think only in the present situation but also your future plans, you will need to be considered it very likely that the next 15-20 years you will have to pay some monthly rate. You have to consider the following things:
- To consider the current situation, professional or personal , a situation that may change. Although some events such as death or illness can be covered by insurance, others such as divorce or long-term unemployment cannot be covered … so you have to have these things in view!
- Do not rely too much on future revenue from inheritance or dividends
- Do not forget that you need money for proper growth of children
- Do not forget that there are a number of other charges payable: stamp duty, valuation fees, fees, notary fees, etc..
The first assessment is necessary if you don’t want your property to be confiscated because you cannot pay the monthly rates!
Remember, if you have some savings it might be worth to use them as a deposit, will be deducted from the money you need to borrow and you will reduce the monthly installments.

What kind of property you need? Assess your needs
You will have the same needs in 6 months, 5 or 10 years?
Are you sure that in the future you will not have to move elsewhere in the country because of work? Put the same questions about your family … Make sure that the house you want to buy is not too large nor too small. Make a list of criteria and use it to make a decision: the type of surface from within, number of floors, location, proximity of schools, access to public transport.
Remember that very few people remain in the house until they reach the mortgage term.
Many owners will sell before the loan payment to reach the end. Although you can choose a property based on your own, must take into account the needs and relatives.

Assessment of financial capacity:
To identify your financial capacity (ability to be able to pay the loan )you should you make a budget – a ratio of expenses and income. You must first calculate how much money do you earn or receive from other sources every month. If the final amount that you receive each month is less than the amount you spend then you have a financial problem. In this case, you don’t need not a loan ,but you need to reduce monthly expenses. If the income and expenditure amounts should defer close then you can consider taking out a loan. If revenues are greater than costs then you can let out a loan. But beware as rates for credit does not go beyond the level of revenue expenditure. Ideally is to should keep a safety margin for unforeseen expenditure.

The concept of debt
When you buy a property is not on none benefit (or the bank or you) if you cannot meet the financial commitment. If you want to enjoy in the years they come from the benefits of your property is very important to carefully manage your money to pay the loan. Nor is the interest of the creditor to seize your property, this may affect their reputation and create differences. This solution will be used only as a last resort method of recovering debts.
Therefore, when you evaluate the financial capacity you have to establish which is the amount of money that you could loan without a problem. There is a rule that says that is no logic to have a ratio of debt (loans, credit cards, shopping, etc..) greater than one third of your income. If so, you will find in a situation of indebtedness.

Mortgage loan – the consultant selection
When you contact a consultant or broker mortgage loans they give you details about the services they offer, if they consider all offers on the market, if they make a limited selection or you will present the products of a single bidder and how you will pay for their services. They will advise you about key points to be considered. Comparing these factors for different loans you will be able to determine which is the best deal for you. Lenders will want you money, so use the details, to choose and make sure you choose the best mortgage for you!