Buying your first home is a huge step. It is also one of the most important that you will make for your future. Owning a home means owning equity. At the end of the day, you have a big investment that you can sell if you absolutely need to (though hopefully, you won’t ever be put into this position).
Own your first home, and you will be able to sell and then buy another much more easily. Live in it for years, and chances are it will increase massively in value so that you can grow a nice nest egg for yourself and your family.
Owning property is so important, but it is also harder than ever to buy your first home (even with homeownership schemes). To help you, use this guide to prepare:
1. Save for Your Deposit with these Tips
You will need to save for two things; the deposit and stamp duty. Saving double what you need for your deposit is a good way to prepare for this and also gives you a working plan forward. Once you have this amount, work out the most you can save per month and a timeline for when you will have saved it up. To stay honest, put the amount you need to be saved immediately into your savings account (this way, it can also earn interest) at the start of the month.
2. Build Credit
You will want to improve your income/debt ratio. What this means basically is that you earn more than you owe. You will also want to use your credit cards rather than your debit, and then pay them off as soon as you can before the month is up. You can even take out a credit building loan if your credit isn’t the greatest currently.
3. Stay Employed
If you were thinking about changing jobs, or even starting a business of your own, know that this complicates the mortgage approval process significantly. You will want to be employed at least two years before starting to apply for mortgages, but this may not be enough. Doctors mortgages, for example, can be difficult to obtain. This is because doctors, GPs, and nurses alike can have complicated pay structures. To get a mortgage that suits you, you’ll need a specialist broker like Nurses Mortgages Online who are familiar with the medical industry and its pay structures andcan help negotiate a mortgage on your behalf.
4. Have a List of Essentials
The best way to make your money go further is to buy a property that needs work. With that in mind, you will want a list of essentials. These essentials should be components of a property that are either impossible to change after the fact or alternatively too expensive to change. Find a property that offers these minimums, and you can invest and upgrade your property as you go. Once done, you’ll have a property worth far more than what you purchased.