subject: Can You Afford The Mortgage On That Egypt Property? [print this page] Egypt is a fascinating country with intriguing history, gorgeous beaches, a hot climate, and many great options for investing in Egypt property. However, before make a decision on a property in Egypt, it is very important to crunch the numbers and actually determine how you will afford the mortgage on your new holiday home.
To determine whether you can afford that Egypt property, you need to look at three factors: how much you earn, whether or not you have good credit, and whether you have valuable assets. These are the three things that a bank looks for when they decide whether or not to give you a mortgage for your real estate in Egypt.
How Much Do You Earn?
Think about your total take home income after taxes, and how much of that you could reasonably spend on a mortgage for real estate in Egypt. Most banks will specify that you can spend a certain percentage of your income on a mortgage, which puts a limit on the price range of home you will want to search for in Egypt.
It is a good idea to understand exactly how much of your monthly income will be spent paying your mortgage, so that you do not get into the mind-set that you can afford a house which is a certain price, when you actually cannot. Do not spend too high of a percentage of your monthly income on your mortgage, or you will not have a financial cushion in place if something goes wrong.
Be Modest
When you apply for a mortgage, the lender will give you a maximum price that you can buy a piece of real estate in Egypt for. However, it is smart to buy a home that is under this limit, because you will have lower monthly payments and you will have some wiggle room in your budget it all of a sudden you experience an unexpected drop in your income. If you are paying mortgage payments that you can barely afford in your current situation, you will get into trouble quickly if that situation changes.
How Much of a Down Payment Can You Afford?
If you are able to put a substantial down payment on your real estate in Egypt, you would not have to take out as much on a mortgage. This means that you will have a lower monthly payment and this will help you afford the mortgage. The more you pay in a down payment, the less you are charged interest on in your mortgage. If you know that you want to buy a property in Egypt and you can start saving money a few years in advance, this can really help your financial situation.
Make sure that before you make the big investment of buying a home in Egypt, you fully assess your financial situation and determine what sort of mortgage you can safely afford.
