Buying – or even thinking about buying your first home can be scary for anyone, even if you have done all your research. There are so many things to consider – what kind of house you want, where it is located, but most importantly, how you are going to afford your new perfect home. There are many different kinds of loans and mortgages out there, and it can be hard to sort them all out, especially if you are stressed already. If you are currently buying or looking to buy soon, here are some tips.
The most important thing you can do if you are even considering buying a new house is to have a deposit. The bigger the deposit the better – the optimum figure is usually about 20% of the purchase price. You don’t need to have a big deposit, but it will make life a lot easier for you in terms of getting a loan, as well as paying it off. You reduce costs associated with buying such as certain insurances and fees, plus have more options and lower interest rate options with a 20% deposit.
If you have regular savings and are good with saving your money, this will help you out tremendously when you are applying for home loans. If you have demonstrated that you can save consistently, and have also held down a job for a significant period of time, your lender will probably hold you in higher regard, and may even be more lenient on some portions of your loan.
Consider other loans to support yourself
Are you a business owner but yet to buy property? Perhaps you are worried about the effects of this new move on your business? If you are in need of financial relief, you can always get in touch with a business loan specialist to learn more. There are ways to re-jig all your finances to place you in a safer position overall.
It is easy to get sucked into the hype of supposed low interest rates, but don’t go with the first offer you get. Different banks will have different offers, and these may even be dependent on the time of year at which you are looking. You should also consider other avenues, such as businesses who specialise in home loans – you might even get a better deal there.
Calculate your loan repayments each month for each prospective offer and see if you are able to afford it without stretching yourself too far. This will give you a good idea of how much you are going to have to put aside each week or month, and it will also be a good way to see if the loan is within your current means.
These are some important finance tips for first home buyers – there will, of course, be many other factors to consider, but you can get yourself on track to success early on and save yourself a lot of stress. Do remember to do all your research before you make enquiries, as the more informed you are the easier it will be.
Are you a current first home buyer? What issues are you having? What have you found works best? Leave your thoughts and comments down below.