Climbing onto the property ladder isn’t always easy, especially for those who have been studying at college or paying rent. If you’re looking to buy your first home, here are some steps to take to maximize your chances of becoming a homeowner.
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Saving for a down payment
Saving money can seem impossible if you’ve got outgoings to cover or you’re paying off loans or debts, but the more you can put down on your first home, the better. If you have a substantial down payment or deposit, you won’t have to borrow as much money and you’ll receive better mortgage offers. Try to start saving as soon as possible and transfer a sum of money to your savings account every payday. Use a budget to control spending and set limits and go through your statements to see if there are costs you can cut or eliminate. If you have memberships you never use, for example, or you’re paying for subscriptions you don’t really want anymore, now is the time to cancel monthly payments.
Shopping around for a mortgage
When you’re establishing a budget for a new property, it’s essential to figure out how much you can afford to spend and try to find the lowest mortgage rates. You can carry out research online and seek expert advice to determine which options will suit you best. It’s beneficial to think about how much you can afford to pay per month before starting to look for houses or apartments. You don’t want to stretch yourself too far and find that every month is a battle. Once you have mortgage options on the table, take time to compare prices, terms and interest rates and make sure you’re aware of the terms and conditions.
Being flexible
Many first-time buyers find that it’s difficult to buy their dream home because it simply isn’t affordable. If you’ve started looking at listings, and you’re worried about prices, it’s beneficial to try to be as flexible as possible, especially when considering locations. It’s often possible to get a lot more for your money and access a wider range of properties if you’re willing to shift the boundaries slightly, particularly in big cities and property hotspots. Even moving your search area to include a few more blocks or an extra mile in each direction can make a huge difference. It may also be worth thinking about buying a house that isn’t in pristine condition, especially if you’re creative, or you have practical skills, such as decorating, building or plumbing under your belt. Taking on a project can help you save a lot of money and you could also add value to your new home.
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Getting onto the property ladder is difficult, but there are ways to increase your chances of being able to buy your own home. Start saving as soon as possible and save as much as you can, shop around for the best mortgage offers, try to be flexible when choosing locations and consider a wide range of properties.
