Instructions: Enter numbers and decimal points. No commas or other characters.
This is your principal + interest payment, or in other words, what you send to the bank each month. But remember, you will also have to budget for homeowners insurance, real estate taxes, and if you are unable to afford a 5 to 10 % down payment.
Barbados Real Estate & Mortgage Tips
What is the difference between Pre-Qualified and Pre-Approved?
Pre-Qualified for a mortgage means that a lending institution has given you a good idea of how much you may be able to borrow to purchase or build your home.
On the other hand, with a Pre-Approved mortgage, the lending institution makes an actual commitment to loan you the determined amount of money for your mortgage.
When in the market for purchasing a property it is a very good idea to know how much you qualify for.
This will allow you to shop within your budget, and it will also show sellers and real estate agents that you are serious.
Know Your Total Debt Service Ratio
If you are considering applying for a mortgage for a property be aware of your debt to income ratio also known as total debt service ratio (TDSR). This is a calculation most institutions use to assess your level of debt.
To calculate, add up all your monthly debt payments (including an estimate of the said mortgage payment) and divide the total by your gross monthly income. A good percentage would be about 40% or less.
Have Property Lines Defined Before You Purchase
It’s absolutely essential to get a survey done on your potential property so you know exactly what you’re buying. Knowing precisely where your property lines are may save you from a potential dispute with your neighbors. It will determine is there are any infringements committed on your part or on your neighbors part.
