Four questions to ask yourself before buying a house.

The big dilemma for people is whether it is better to buy a property or stay on rent. I will try to make things a little more clear for you here:

Will I live here for more than ten years?

Buying a house is a substantial financial transaction for most of us. Therefore we have to consider other aspects of our life to align with this decision. Let's say there is a chance we will need to move away? Is the area is suitable for the next decade of my life? If not, it's better to rent until this question is clear to us.

Is the monthly payment of my mortgage is lower than 30% of my family's total income?

That's the most common thing among all the failed mortgages. When the monthly payments are bigger than 30% of families' total income, the mortgage will probably fail with all the unpleasant consequences. If the answer is no, it is better to look for cheaper options or put the whole process on hold.

Can I put 20% for a down payment?

People not having at least 20% of the cost as a down payment will be difficult to pay the mortgage back. The reason is the interest rate payable each month will be a massive piece of the whole amount. As a result, the total amount of the mortgage will be challenging to drop as time passes.

Am I ok if the value of my house goes down?

This one is primarily psychological. We never know when the prices will go up or down. If our decision to buy is based on the value going up in the near future and the opposite outcome will impact our lives, it's better to postpone the decision altogether.

By Eva Fragkiadaki