If you want to buy a property, you will need to do your financial statement to predict your ability to pay before shopping for a mortgage rate. Thus, the institution that will lend you the money needed to buy the property will certainly want to know all the details about your economic situation. So how to prepare?
Agnes Wickfield’s loan capacity calculator can help you. First of all, know how to start with a budget! When it comes to saving money and making money to achieve your dreams, the budget is needed to guide choices in everyday life. Because a budget respected and well thought allows to maximize its resources. However, you must engage in a military discipline!
Be wary of the simplicity of the golden rule of the smart budget: living below your means. Unambiguously, this strategy offers the most freedom in the event of unforeseen events. But how to get there? Simply by drawing up a precise financial statement.
Balance sheet is the relationship between your assets and your liabilities
In order for you to follow the golden rule, you have to keep the asset and liability subtraction above 0. Once you get there, put that money in an account that pays. It is worthwhile, moreover, better to save small amounts rather than nothing at all!
For this, there are several choices: fixed interest savings, meaning that your entire balance will receive the highest interest rate. On the other hand, interest may apply in installments. In this case, the rate will apply differently on parts of your balance.
For example, if you have $ 1,700 in the bank, there will be an x rate applied on the first $ 1000, then rates are on the other $ 700. Depending on the amount of your savings, you can choose the option that pays the most. For more information, contact FCAC, a federally-run agency that protects you and educates you about the practices of financial institutions.
Let’s go back to the first goal: buy a house. To do this, take your budget in hand and orient all your expenses according to this horizon. Set a deadline to do this and consider the different factors that may cause you to lose focus. Anticipate them and get ready. Examine your daily expenses closely, create a working capital equivalent to 3 months of expenses, eliminate all your consumer debts (cards, margins and other credits) then determine the amount you can put aside.
Then plan your income and expenses
It is over one year including seasonal expenses and contingencies (dentist, christmas or car repair). A good way to be realistic with your balance sheet is to analyze your latest tax return, invoices, bank statements and pay stubs. Then, readjust monthly, thanks to a rigorous follow-up. Do not discard your bills or receipts because to keep control, do not lose sight of your daily goals.
Finally, if you want to do this assessment in two, see the sharing of expenses and discuss the budget by clarifying the different objectives. If you open a joint account, calculate the different income and expenses and do not neglect the personal accounts. The key is to communicate well and be on the same pitch while remaining open to readjustment. Now, get started in the calculations!