Buying a house of your own is a dream that most people hope to one day fulfil. It’s one of the best things you can ever do for yourself, your family, and your future. Owning property gives you financial security and peace of mind that you will always have a roof over your head. You don’t need to worry about your landlord deciding to sell up or the rent suddenly being raised, you have total peace of mind. Of course, before you can buy a home of your own, there’s a lot that you need to think about. The most important factors being your deposit and mortgage. To help you prepare to buy your first property, we’ve put together this handy guide. Have a read and take the below tips and advice on board.
Get your deposit sorted before anything else
When it comes to buying property, the deposit is a crucial factor. Without a deposit, you won’t be able to get a mortgage. Without a mortgage, you can’t invest in property. That’s why it’s advisable that the first thing you do is focus on getting your deposit sorted. Most people get a deposit together by putting by a small amount each month, or by getting a loan. However, it’s important to understand that getting a loan may impact your chances of being accepted for a mortgage.
Clear all debts
Before applying for a mortgage, it’s important to clear all debts. When looking at your application, mortgage companies have to take any outstanding debts into account. This is to ensure that you will be able to afford the repayment amount each month. If you’ve got outstanding debts, the chances of your mortgage application being approved are low. That’s why before you start applying, it’s best to clear all debts. From overdrafts to credit cards, all debts need to be cleared.
Research the best mortgage options
Don’t just go for the first mortgage that you come across, take your time to research your options. Every mortgage offers different things, and it’s important to understand that. Some mortgages have higher interest rates than others. Some require a larger deposit. While others offer variable interest rates. It’s worth doing your research to ensure that you go for a suitable one.
Don’t start house hunting until your mortgage is sorted
Far too many buyers start house hunting before their mortgage has been approved. Don’t do this, because if you find a house you like, you can’t make an offer. It’s best to wait until your mortgage has been approved before you start looking at houses, that way if you find your dream home, you can buy it. You don’t have to wait around until your mortgage is sorted.
Deposits and mortgages can be tricky to negotiate as there’s a lot more to them than meets the eye. However, if you take the tips and advice on board, making your first property investment should go without a hitch.