FIRST-TIME PROPERTY OWNERSHIP

Renting sometimes seems foolish, which is understandable. It is challenging to save money when renting because it is rarely less expensive than paying a mortgage and never truly feels like home.

Renting sometimes seems foolish, which is understandable. It is challenging to save money when renting because it is rarely less expensive than paying a mortgage and never truly feels like home. There are benefits to renting, such as having a landlord who will take care of any issues that emerge, but there are also many disadvantages. For instance, you wouldn't be able to personalize or decorate the house because it isn't yours.

Prospective homeowners preferred to look for homes in cities before the pandemic so they could be close to their places of employment. However, because technology has advanced to enable more remote work, more people are now looking at houses in rural areas rather than cities. Why? because living in a rural place is far less expensive.

GUIDELINES FOR STEPPING UP THE PROPERTY LADDER

·        Improve your credit rating

Reduce your bills and take all necessary steps to raise your credit score. This credit score will be used by mortgage lenders to assess whether or not to give you money.

·        Use a mortgage broker's assistance

As a first-time buyer, specialised mortgage brokers and experts can assist you in obtaining the greatest offer. To give yourself more market possibilities, pick a mortgage broker who isn't exclusively affiliated with one or two lenders.

·        Assistance from parents

It's not a novel concept, but asking your parents for assistance with the down payment or serving as a guarantor on a "guarantor mortgage" are two ways to jump on the property ladder.

·        Save

You will need to put down money in addition to paying estate agents' and lawyers' costs when purchasing a new home. Despite the fact that mortgage lenders would lend up to 95% of the value of the home, a 5% deposit is still required.

·        Examine your budget

Use a mortgage calculator to see how much you can borrow depending on what you can afford to repay monthly. You need to be sure you can make the mortgage repayments on a monthly basis.

·        Several-person mortgages

Joining forces with family or friends to apply for and pay for a mortgage jointly is a growing trend for new and first-time buyers. On a mortgage application, some mortgage providers permit up to four applicants.

·        Compromise

Although you may have lofty ideals for your ideal home, you must be prepared to make concessions and acknowledge that although you must start somewhere, this may not yet be your ideal residence.

Why do you need this property?

Consider what kind of property you desire for a moment before beginning to search for houses or speak with mortgage lenders. What size, for instance, would you prefer? What location would you prefer it to be in? What do you require in this second and in the future? Your responses to these queries will significantly affect how much your house will cost.

The best piece of advice we can give you is to keep your expectations in check until everything has been put in writing and signed. Many things can go wrong while buying a home, like having your mortgage application rejected, the house sale closing, problems with the property being discovered, etc. Therefore, wait to hold a party after you've completed the house purchase and received the keys to your new residence.