As a seasoned renter, you may be aching to reach out and grip the first rung of the property ladder. You’ve been saving your pennies for the past few years to raise a substantial deposit, you’ve had little or no social life, and you’ve been eating student-esque meals to remain as frugal as possible. You can see the light at the end of the real estate tunnel, but you’re still worried. There’s a little niggle inside telling you that something will go wrong. Don’t worry. Follow these tips and discover why there has never been a better time to buy your first property.
Before You Buy
Before you even consider hunting for a property, you need to make sure that all of your financial ducks are in a row. Create a sound monthly budget using a template available at office.com and stick to it. Try and include everything from your large non-negotiables such as your electricity bill to the seemingly insignificant items such as that packet of chewing gum you purchase every couple of days. You’ll be surprised how the little things add up, and you want your budget to be as accurate as possible. Work out how much you can save and squirrel whatever you can away in a savings account. As this accrues month on month, you will be more motivated to keep topping it up.
Apply For Your Home Loan
If you head to a site like mortgageloans.co, you’ll be able to view the most appropriate home loans available to you. Whether you’re planning on purchasing in Buffalo or Orlando, there is a wealth of statistics detailing home prices and property market forecasts for a wealth of regions across the US.
To make sure you’re in the best financial position before you apply for your mortgage make sure that you haven’t ventured into your overdraft for the six months before your application. Pay off all of your credit cards and make sure you haven’t skipped any debt repayments or forgotten to pay your utility bills. You need to look like the perfect borrower with a strong credit score. After all, this will be the biggest debt that you ever take out in your life.
Bricks And Mortar
Most people aspire to own their own home. People strive to have their own little piece of real estate, somewhere that they can put their mark on, turn into a comfortable space and retreat to when times are stressful. If along the way, you can add value to your humble abode, you’ll be making a sound investment in bricks and mortar. If you are purchasing a home for the first time and you’re planning on living there for at least five years, the chances are that you will make money on your investment after selling your home to then put towards moving up to the second rung of the property ladder.
It’s time to be brave, take the plunge and move from established renter to homeowner and take your first tentative step onto the property ladder.