Buying a property is a goal for many people. You can essentially take your first steps onto the property ladder and, hopefully, into building your assets and net worth. Even better, if you buy a home rather than rent, you have more control over how you decorate it.
However, it’s much easier to talk about buying a property than to actually do it. There’s a lot to think about—like how much you can borrow, what kind of mortgage you’ll get, and what fees you’ll need to cover. That’s where speaking to someone like a Mortgage Broker can really help, as they can walk you through the process and give you a clearer picture of what to expect.
Here are a few tips for first time buyers to get their foot in the door with their first home. Maybe this won’t be your forever home, but it’s a start.
Check Your Budget
One of the reasons why many people struggle to buy a property for the first time is because property prices are currently higher than they’ve ever been before. If you don’t have property already to sell and you’re just getting started, it can be difficult to find somewhere that you can afford.
Rent prices don’t help, because higher rent means that people can’t save as much as they would like to, so it’s harder to build up enough finances for a deposit.
However, there are options for people who are struggling to get a home. For example, TRU Factory Direct Housing offers some fantastic options with more affordable prices. This means that you can buy a property to call your own without being tied to a mortgage for the rest of your life.
This is also a good option for people who want a second vacation home, or somewhere that they can rent out to other people for some passive income.
Getting a Mortgage
If you have the cash to buy a property outright, you’re already in a much better position than most people. In fact, some buyers—like New Jersey cash home buyers—specialize in purchasing homes outright without needing financing, which can speed up the process and make them more appealing to sellers.
Generally, your mortgage broker will consider your credit score, employment history, and income. They will then give you an estimate of how much you will likely be able to get as a mortgage, as well as the interest rate on your mortgage.
If you’re a lower risk, because you have a better credit score or a good job, then you’re probably going to get a better deal on your mortgage. This means that you will have to pay less in interest over time. However, avoid the mistake of stretching your mortgage to the limit. Ideally, you’ll have checked your budget already so you can find an affordable home in your budget.
You can also improve your mortgage by paying a more significant deposit. In general, you’ll need to save at least 5-10% of the value of the home as a deposit, but if you’re able to put more in, then you should get a better mortgage. You should also save up for administrative and moving costs.
Making Your House a Home
Once you have a property, the hard work isn’t quite done. There are different ways to save money, including buying a house that might need some cosmetic repairs and work done on it. Don’t make the mistake of buying a big project as your first house, unless you’re confident that you can take on the challenge.
First, start with the big changes and improvements. This might be repairs or updating rooms like the kitchen or bathroom. These projects are more expensive and will take more time, so only take them on if you have the budget.
Once your house has the right bones and you’re happy with it, you can move onto cosmetic changes. This is when your house actually starts to look and feel like your home, rather than just a property or a show home.
Because you own the property, you can change it however you like. This means making large and small changes, such as renovating the kitchen or painting the walls.
When it comes to interior design, the most important thing is that you fall in love with it. Yes, it helps to do some research and get some ideas together, but don’t be too interested in trends and fashions, because these change.
Instead, allow yourself to be inspired by different styles and ideas until you can put something together that you love. Soft furnishings like cushions and throws can make a bare room feel more complete and lived-in, and wall art is a great way to express your sense of style and add some color to your room.
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