Posted on Mon 11/24/08 in House quest
As a teen you cannot wait to get rid of them. Always minding your business. Then you free yourself and live on your own. Finally! I will take care of myself from now on! Then you want to buy a house, alone.
Today I had two talks with people with money. One was working for a bank, the other a mortgage broker. I was scared beforehand, since they could break my dream with a few words.
They however, did not. I knew I couldn’t get the cash I needed with my salary. When looking at the amount of money I had to pay up each month, it’d be very doable. They however aren’t allowed to lend me the cash with my current salary, due to some law. Sure, as one person I can easily afford the money I had to pay for a €195.000 mortgage. A family with two children, f.e., cannot.
It came down to the simple salary issue. As long as my pay check did not increase, I couldn’t get the money needed. That’s where my parents come in. If they decide to chip in, there’s no real problem (theoretically). And they said they are willing to do so. As long as I can pay the money each month, there will be no problems for them. In numbers:
Let’s say I can get a mortgage of €160.000 with my current salary. The house I wish to buy is €195.000, so I’d need about €200.000 in total. If my parents agree with a loan / addition in their current mortgage (depending on the bank we get the mortgage from) of €40.000, we have a green light. Again, theoretically, since they won’t promise anything in the current market.
The talks were only an introduction. I still have to have a chat with my boss, because the people with the money want to know what to expect of my salary the upcoming years. I am hopeful, however. If I can get reasonable raises the upcoming years and the bank/insurance company loaning the money agrees with the setup, I am set.
To be continued as things develop…
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