Buying a home is a major milestone in most people’s life. Whether it be the first-ever home, or if a move is required for whatever reason, it’s still a big step.
Now, it doesn’t matter whether you’re struggling to buy your first home or you’re struggling to afford to move into another home. There are a few things that you can do to try and manage the process a little easier. The sad reality is, the government at the minute is just not making it easy for us to buy homes.
Prices are so high, and the requirements that have to be met to gain access to a mortgage are just getting more and more ridiculous. But when moving out is essential, there’s nothing you can do to shy away from the process, and there’s nothing you can do about the fact that it will be so financially draining. But nobody likes to stress, and we wouldn’t want to see you go through any stress at all!
So, have a read of the tips we’ve got below for you, and see if we can ease the situation of struggling to buy a home. Or even if you’re trying your hand at real estate investment, this will apply to you.
If you’re struggling to gather your funds, you need to start thinking about different funding options. There are definitely some ideas that we know you won’t have thought of, and the first that we want to discuss is crowdfunding.
Crowdfunding is used more by the people looking at real estate as an investment, which is an excellent route to go down. Real estate can open many doors for people in terms of money and opportunities, but sometimes the funding isn’t there to get your foot on the ladder.
Real estate crowdfunding allows you to invest straight into the market, giving you a head start with the whole process. We understand that building up funds to invest in is rather hard, so explore all of your options, including the crowdfunding one.
If it’s your first time buying a home, then the bank that you’re with could be the place to start. Many of them have accounts that are specific for people trying to buy a home, which means the interest rate is slightly higher. Whilst it might not be the extra money you’re looking for in one big go, every little one definitely does help.
There’s also the option of going to mom and dad, and see what they can help you with. It’s so common that people’s parents will help them with their first move, but you don’t want to be too pushy. It’s usually up to them to approach you and tell you what they would like to give you. But if you’re really struggling, and need to borrow money, for example, your parents would be the first place that you should turn.
Other family members might pitch in with things such as appliances, furniture, and any other things that you might need to get your new life in your new home started.
If you’re already in a home, but you really need to move again, then you’re definitely going to be in a little bit of a pickle trying to save to buy. So the best option is to improve the home you have so it values up a lot more than what you put in, so when you sell it, you have more equity and your current lender, and other lenders will be keen to work with you on financing.
When you sell, the mortgage remaining is paid off, and a new loan secured against your property. It can appear a complex process, but people switch mortgages all of the time.
Housing Options Within Your Budget
Sometimes, you might just be going for the wrong housing option, and that’s what’s causing you so many issues. It all depends on your budget, what area you have been looking at, and what type of house you’re trying to buy.
If you’re going for a 5 bedroomed house, with three bathrooms and an acre of land, you’re probably going to struggle to buy massively. They’re so expensive and way out of most peoples price brackets. You need to go for something super affordable for your first home because you can always move later on down the line.
Small and simple is key. If it’s just you and your partner, but you know that the next step after moving in is a baby, then you know you’re going to need to look for homes that are no more than two bedrooms. It just gets so expensive after that, and there’s really no need for it! You also need to make the decision between new build, and older homes. If you’re looking to get more for your money, the option would be to go for an older home, obviously.
However, if you’re looking for something that’s going to be good to go right from the very beginning, a new build home would be for you!
Mortgage rejections are real, and they happen to people all over the world on a daily basis. You don’t even need to have made a million bad decisions or have a poor credit score.
Banks are so critical of your records, and they will fine comb through them and pick out anything to raise your mortgage rate. It could be anything from sending your parents $200 a month to save to the many benders you might have gone on on the weekends over the past years. So don’t worry if your first mortgage rate isn’t what you would have hoped it could be. In the beginning, accept what you can to buy the home.
From there, you can look at remortgaging a few months down the line, which is always an option that people like to consider.
You don’t really have many really good savings options due to low interest rates. There’s nothing we can really wow you with here. If you were to live in the UK, their government does help with first home buy schemes, which means that they also put a little something in for every bit you put in. But many people don’t qualify for this option, so it is down to the good old fashion way of saving, and that’s cutting back on the things that you really don’t need in life. Yes, budgeting!
If you’re someone who binge eats on takeaway, start making your own meals at home. Or if you’re someone who drives absolutely everywhere for anyone, start asking for fuel. It’s the little bits of spending that you used to be used to that you really need to get rid of.
Buy & Sell At The Right Time
This is a major factor in your success. If you don’t buy at the right time, you might be paying a fortune for something that could soon drop in price. But there’s no way of knowing what’s going to go up or down in price, and when it’s going to do it. So, the best thing you can do is talk to a realtor for their advice.
In the long run, you should be thinking of your property as a mini investment. If you buy a home now, there’s no telling how much it will be worth a few years down the line. So if you were to sell again, you could make a nice little profit without even meaning to.