I remember when I applied for a mortgage in 2001, it was a stressful procedure that I had to deal with pretty much by myself because my other half was working long hours. Mortgages were new to me, it’s not something I had given much thought to until a few months before.
The apartment we were living in was a little too expensive, and it felt as if we were just throwing money away. We realised we could get a mortgage and pay less out every month, so we did just that. The entire process was quite stressful, but there was something that helped just a little bit. When we were enquiring about a mortgage, our helpful financial advisor friend told us about a mortgage Calculator, and how we could use one to help us decide what kind of mortgage we would need to get and how much we would need to borrow.
So, the next day I sat down with a huge list of figures that I needed to put into the calculator. The figures included our monthly income, and our monthly outgoings. This helped us to understand how much we could borrow, how much we would roughly pay out each month, and how much we would have to pay back in interest.
While this may not seem like much to you right now, knowing how much we were roughly going to be able to borrow, helped to set the ball rolling just that little bit more. It meant we could then start looking at houses, and we could take a few more steps a lot sooner than we otherwise would have been able to.