It doesn’t matter if you’ve been a seasoned renter for a decade or more, or if you’re slowly becoming a little frustrated at living with your parents, there comes a time in every individual’s life where they want their own little mound of bricks and mortar. You might be keen on a cozy little apartment, you might fancy a condo, or you might have grander ideas of a multiple bedroom and bathroom property. Whatever it is that might see you venture onto the first rung of the housing ladder, you need to maximize your chances of succeeding at purchasing your first property.
Your Financial Situation
Whether you head to the real estate agent, a home loan lender or your property lawyer, each party will be keen to understand and vet your current financial situation. As much as possible you need to be debt free and managing the incomings and outgoings of your personal account. Create a budget at least three months before applying for a home loan and stick to it, ensuring that your expenditure never exceeds your incomings, you never utilize your overdraft, and you don’t add to your debt.
If possible, you should try and eliminate all unnecessary debt. However, sometimes this is not possible. Alternatively, you could consider a form of credit consolidation to morph all of your separate debt repayments into one manageable monthly payment. This simplifies your debt and could see you clearing your debt faster. Your credit rating will inevitably improve, and you’ll be a much more attractive prospect for home loan lenders.
Don’t Overstretch Yourself
Many people who are searching for their first property get seduced by the interiors, dressing and fixtures within properties. You need to keep your budget in mind and not exceed this no matter how lovely the carpets are or how large the garden is. There is an element of compromise in every house purchase, and you need to carefully work out what your non-negotiables are. Will you sacrifice an en-suite bathroom for a larger kitchen? As you explore the properties available in your vicinity, you’ll slowly develop a clearer picture of the pad you are looking for.
Allow Your Head To Rule Your Heart
Although you need to love the property in which you live, you also need to be aware of the financial element of your purchase at all times. Just because you adore a pad doesn’t mean you should pay over the odds for it. You must see your purchase as an investment and a business transaction to a certain extent. You may plan to live in your first property for five years before moving on. If this is the case, you must look into the housing market forecasts for the area where you are looking to buy. If the numbers add up, you may be looking at a handsome return on your patch of bricks and mortar.
Venturing onto the property ladder can be an exciting yet scary experience. Follow this advice to ensure your first house purchase goes as smoothly as possible.