You’ve been renting for years, and you feel like your money is being frittered away. Every month, you are handing hundreds of dollars to a faceless landlord and never seeing it again. This money isn’t working for you. It’s not an investment, and in effect, you are simply lining someone else’s pockets. Something’s got to give. You are now ready to stretch your wings and hunt for your own property. You ache for the stability of a mortgage and crave your own bricks and mortar. Purchasing a property will be the largest debt you ever undertake, but it will also be the biggest investment from which you can see lucrative returns.
So how do you break the mold and free yourself from a lifetime of renting? Take a look at this guide for some handy tips to transform yourself from seasoned renter to ultimate property buyer.
It’s vital that when you are renting you opt for a property that is well within your means financially. There is no need to be renting that luxury penthouse apartment with twenty-four-hour gym and concierge when you could be renting a more modest two-bed apartment downtown that allows you to save $500 a month towards a deposit for a house. Think smart. Set up a direct debit each month from your current account to a high-interest savings account. If you don’t have a savings account, it goes without saying that you need to get one. Don’t go for gimmicks like free cinema tickets or discounted rail travel. The bigger picture requires old fashioned common sense. You need an account that works for you and gives you the largest return on your money.
It can be demoralizing when you are starting from absolute zero in savings, but over time you will see your pot of money increase. The greater the amount in the account, the more determined you will be to see it grow even further. The greater the deposit you have, the lower the interest rate will be on your subsequent mortgage. If you come into some inheritance money, save it. If you get an annual bonus from your job, save it. Your friends will be calling you Ebenezer Scrooge in no time.
When making your mortgage application, your financial situation will be scrutinized by your potential lender. To secure that all important home loan, your credit rating needs to be as good as it can be. If you have had a poor credit rating in the past, all is not lost. If you do have credit cards (and many people with good credit ratings do), make sure you pay more than the minimum payment towards them each month. By doing this, you are showing credit reference agencies that you are willing to shift the debt, and you aren’t one of those people who has a permanent amount of debt that just ticks over. If you have credit cards that are no longer used, cancel them. You don’t want it to flag up that you have a dozen credit cards when you actually only use one or two. If you take a look at the credit cards on offer at https://www.nerdwallet.com/the-best-credit-cards you could transfer your debt to a card with a more favorable interest rate.
If you are the ultimate seasoned renter and you have been hopping from property to property, make sure that you were registered at each address. It doesn’t cast you in a positive light if you disappeared for six months in 2015 when you were living in in Brooklyn because you forgot to register yourself at the address.
And whatever you do, don’t apply for multiple lines of credit before making a mortgage application. It looks like you are on the lookout for lots of credit when you may simply be scouting out different mortgages.
It’s vital that you understand the ins and outs of the house buying process. By thoroughly researching the most effective way to traverse the property market by using a guide like http://www.propertyguru.com.my/resources/buy-property-guide/the-complete-guide-to-purchasing-a-property-in-the-subsale-market you will stay miles ahead of the rest of the new buyers out there potentially trying to secure the same property as you. The comprehensive guide covers all bases including home loans, the role of real estate agents, what your lawyer does for you and the intricacies of the home buying process from initial offer to completion. There are millions of people out there just like you attempting to get ahead of the game when it comes to purchasing their first property. The market is competitive, and you want to be the winner.
So you have your deposit, and you have your mortgage approved. You have swotted up on all aspects of the home buying process, and you’re ready to go. It has taken huge amounts of effort, tears, and sweat to get to this point. You’re ready to go property hunting. Some new buyers find this part of the process the most thrilling aspect of getting their foot on the property ladder. Others believe that it should be exciting, yet for some reason, it ends up being more stressful than anyone could have imagined.
Choices breed indecision, and that is not conducive to an efficient house purchase. A site like http://tomatoenvy.com/2013/04/12/how-to-choose-a-home/ will help you to focus your house buying search criteria. You need to consider carefully what it is that you want and make a list of pros and cons. When you have done this, you can create a non-negotiables list of features that your new property must have as well as other aspects you may be willing to compromise on. Do you want a fixer-upper? Do you want the inner city buzz of apartment living or a quieter house in the suburbs? How much space do you require? Is a garage a must have? Do you really need all that outdoor space or will it become a burden rather than a pleasure? There are many questions that you will need to answer, and the old adage that two heads are better than one has never been more apt than for this very situation. Use a critical friend who is more than willing to tell you that you are totally out of your mind when you mention that you are seriously considering purchasing the one-bed beach side condo for you, your husband who works three hours away in the city and your two kids.
Once you have figured out what it is that you really need and want, and you have found that perfect property, you will need to ensure that you are the ideal purchaser. With your good credit rating, hefty deposit and history of savvy financial decisions, you should be any vendors dream buyers. It’s up to you to project this image to everyone who meets you when you’re in the market for a new home especially if you find yourself competing with another potential purchaser for the house you’ve been eyeing up. Get all your ducks in a row: strong offer, large deposit, and good credit rating.
By following these tips, you will be in a strong position to purchase your first home. Remember, your first home will probably not be your last. You can refer to these tips every time that you are purchasing a new property. The home buying process is a testing one, full of stress, anticipation, and excitement. With determination, commitment and perseverance you will secure the keys to your first dream property.