Times are stressful for first-time homebuyers. Though owning our own home is something many of us aim for, it’s becoming a reality for fewer and fewer people. House prices are rocketing. It seems almost impossible to achieve the deposit rates necessary. If you’re determined, there are things you can do to make life easier. Much of the battle of house buying is getting your finances in order. Of course, that’s easier said than done. Here are some steps any potential home buyer should take.
SAVE AS MUCH AS POSSIBLE!
Saving as much as possible will make getting a mortgage easier. The more money you can pay up front, the smaller mortgage payments you’ll have to make. In an ideal world, you should have at least a 20% deposit to put down. When you consider the price of housing, that’s a lot. It can take years to save up. Not to mention that, the more money you have, the better. There’s no limit on the amount a deposit can be. Larger deposits will see your mortgage payments shrinking even more. Living with your parents until your thirties may seem depressing but you’ll thank yourself. Help yourself get through that time by focusing on your goal. Keep an eye on the housing market to give you inspiration, and set yourself clear savings goals to reach. And remember, it’s worth the effort you’re putting in!
GET YOUR FINANCES IN ORDER
Getting your finances in order can give your deposit that boost it needs to ensure you can become a first time homebuyer. Selling any financial agreements could make you the lump sum you’re after. For example, if you have a structured settlement, selling it could give a huge boost to your savings. If you’re wondering, ‘Would it be right to sell my structured settlement?’ take a look at how much money it could make you. Work out whether it would be worth it in the long run. Think too, about cashing in any stocks and shares you have scattered around the place. It’s also worth cutting down on the amount of money that’s going out of the bank. Cut out additional monthly payments such as subscriptions. The more money you have coming in, the better. Again, this can be a hard decision to make. Bear in mind that you can sign up to everything again once you’re settled in your home.
GET A MORTGAGE
Once the saving is taken care of, it’s time to get a mortgage. Mortgages can be tricky terrain, and it’s worth going carefully. Too often, mortgage lenders will try and tempt you with unrealistic repayment methods. Before you start meeting with anyone, get a definite amount in your head and don’t stray from it. Home owning isn’t cheap. On top of mortgages and bills, you’ll have home repairs to deal with. Make sure you’re not pushing the bank too much. Home owning won’t be half as much fun if you’re struggling to afford your home every month!