Buying a house is the biggest investment most people will ever make. It requires some serious money, with most of us spending a huge chunk of our adult lives paying off our mortgage. However getting on the property ladder is always worth it. When you rent, you’re essentially throwing away money each month. Whereas when you’re purchasing your home it’s money you’re putting into something that’s yours. However, securing yourself a mortgage and saving up enough money for a deposit is certainly no easy feat. Lots of people never manage to do it. But if you’re set on buying a house, here are some of the ways you can make it happen.
Follow These Steps To Buying A House
Improve your credit score
In the years that you’re saving up for your deposit, you should be working on getting your credit file into the best shape it can be. Making sure everything is always paid and up to date is one way to do this. If you have adverse credit, luckily this will drop off your file in six years time, which is the kind of timeframe that it takes most people to save for a house. Just be sure that you’re not adding any more negative information to your credit report.
Taking out a small loan or credit card with a low balance can be useful. Each month spend on it and then pay the balance back in full. That way, it helps to show that you’re reliable at paying and improves your credit score. Avoid taking out new credit in a year or so before you make a mortgage application. It can temporarily lower your score. Your credit file is what mortgage lenders will look at. A good score can be the difference between acceptance and being rejected. It can also be the difference between good and bad interest rates if you are accepted.
Compare mortgage lenders
Of course, having a good credit score will put you in the best position to be accepted by mortgage lenders. But they’re not all the same. You should always do your research to find the best mortgage lenders. Look into things like rates and their customer service. And look into the companies you’re considering online.
To secure yourself a mortgage, you will need around ten percent of the value of the property you want to buy as a deposit. This is over ten thousand in most cases and can be far more depending on where you live and what you want to buy. So if you’re serious about owning a property, you need this money up front. Along with your deposit, you will need money for solicitors fees, moving costs, decorating and furnishing your new home and so much more. Set a savings goal for each month and stick with it. Make cutbacks on luxuries. It’s not much fun in the here and now but getting on the property ladder will benefit you massively later down the line.
Buying a house is a big adventure. It’s something you need to plan for and take steps ahead of time to ensure a positive result. Save up some money for a deposit. Research different lenders and options and keep your credit on the positive side.
Do you have other suggestions for others looking into buying a house? Please add them to the comment section below.
All good points. Just wanted to add that if you’re planning to buy a property to homestead, don’t forget to budget for any updates and repairs you’ll need to do to get started – ie. fencing, barn repairs or construction, etc.
Hello Sarita, Thanks for the suggestion! Your right, budgeting for repairs is an important thing to mention. Thanks for taking the time!