Connect with us


How To Buy A House When You Didn’t Think You Could

person being carried into house

For people who want to buy their first home but feel that the economy and circumstances are against them, don’t despair. There are obstacles to buying a property, but that doesn’t mean they aren’t surmountable. There are a variety of different ways that you can buy a property, and they’re not as difficult as you think. Here are some ideas to get you started.

No Down Payment

Most of the time you’ll see that to buy a property you need at least 20 percent of the purchase price for a down payment. For those without much chance to save, that is the part of owning a home that seems impossible. However, that 20 percent might not be set in stone, so it is worth discussing your options if you see a home you that appeals to you. You might even be able to get a mortgage on a property with as little as three percent upfront. It will depend on your credit rating, the mortgage provider, and the vendors of the property and what they are willing to accept. There are disadvantages to buying a property with a tiny deposit, however, and you should take them into account if you want to try this option. Firstly, the mortgage that you need to take out will be larger than if you had a bigger down payment (so it will cost more per month). Also, you may have to take out a special private mortgage insurance.

Bad Credit

Bad credit is a major problem when it comes to trying to buy a property. You’ll have limited choices when it comes to the mortgages you can get, and they’ll certainly come with higher interest rates, assuming you can find one that will accept you at all. If bad credit is your problem, then it’s important to know what your credit score is. If you know what it is, you will know how quickly it will take you to fix it. It’s important not to incur any further debt when you are house hunting because you don’t want your credit file to look worse than it already is. So put off making any other large purchases until after you have bought your house – if they are essential in the first place, that is. However, what might surprise you is that coming clean and discussing your poor credit with your lender, might get a better deal than you may think. It’s when banks discover this during the application process that it could become an issue. Have a long talk with the lender and attempt to demonstrate that you are trying to be more frugal than in the past, and are in a better position to pay back any repayments. Doing this will, of course, only work for you if the reasons for your poor credit, such as non-payment, for example, have happened in the past. If the reasons are current, you could still have a big problem.

Nothing You Like Is In Your Price Range

On a positive note, it is good to have a clear understanding about your price range. However, if you only seem to be able to find houses are above this price range, this can be an issue. It doesn’t have to be this way; although increasing your budget may be problematic, spending some time to work out what is it you want in a home can be worth doing. This can narrow down and separate necessity and luxury. For example, if you want a yard, but you don’t need three bedrooms, you can find a lot more houses that fit the bill. When you are familiar with what you are unable to compromise with and what you don’t mind living without, you’ll open up a wide range of additional possibilities. If you can only find properties that you like on the rental market and not for sale, again you might be in luck. Talking to experts about rent to own Raleigh NC could give you even more choice – rent now and then buy the home at a later date, perhaps, if that is what you want to do.

You’re Scared

Buying a property is scary. It’s scary the first time you do it, and this is the case no matter how often you become familiar with the process. Buying a house is a big commitment, and this can be a concern for some. It’s a decision that will effect you for the next 25 or 30 years, depending on how long you decide to live there, where you will be paying a large amount of money out each month. When you think about it, isn’t that what renting is? You’re paying out a lot of money each month (plus bills and utilities) to have the privilege of living somewhere, only when you rent you don’t own the home, and there are many more restrictions on what you can do there. So if you think of it in those terms, you’ll see that owning a home and paying a mortgage is less scary than renting a home. You’ll have a great pension fund, assuming you’ve paid off your mortgage by the time you retire. Plus you’ll have a lot more freedom when it comes to making home improvements. So taking the plunge is a good idea if it’s something you can do.

You Don’t Know How To Start

Not knowing how to start when it comes to buying a property is the easiest of all the problems to fix. You’ll need to learn about how the home buying process works in your state, as each state is different to the next. Then you’ll need to understand how mortgages work – speak to an expert about that and they will be able to offer plenty of advice about getting the one that works for you too. Then you’ll need to work out all the costs associated with moving home because if you forget to add those into the equation, you can have a serious problem when you need to pay removal costs, realtors’ fees and more. Getting in touch with real estate agents and signing up to hear about new properties is another excellent way to begin. Getting in touch saves you time because the homes will come to you rather than the other way around. Remember never to pay an upfront fee. Next comes the part that’s fun – viewing the houses. Hopefully, you’ll find one that suits you perfectly.