Nowadays, an increasing number of people are renting. Many aren’t ready to settle down and commit to purchasing a property. Others take a while to build up a deposit due to the rising cost of living and the stagnant level of pay that isn’t in line with this. But, if you feel that you may soon be in a position where securing the keys to your own property that you can truly call your own home, here are a few steps you can take to make the process as simple and straightforward as possible!
WORKING ONN YOUR CREDIT SCORE
If you’re planning on buying a house, you’re going to work hard on one particular area of your life, or you won’t be able to get a mortgage at all. This area is your credit score. Put simply; a credit score is a tool that professional lenders use to determine whether they should lend you money or not. Now, you might be thinking that you don’t need to take out a credit card or loan, so what has this got to do with buying a house. But remember, a mortgage is essentially just a huge loan.
Credit providers are going to want to make sure you have a good history of repaying money that you’ve borrowed if they’re going to hand out such a large amount to you. Having a high credit score shows that you have been responsible with previous lending. It means you repay on time and as agreed. This will give a mortgage provider confidence in you as a reliable individual and means they’re more likely to approve an application from you. A low credit score reflects irresponsible financial behavior and can prove significantly detrimental to a mortgage application. It’s not all too surprising, then, that you’re going to want a decent score before you start house hunting. The following tips will help you to achieve this.
Starting Out
If you haven’t borrowed money before, you won’t have any credit history. This can prove just as harmful as having a bad score, as providers just don’t know how you’ll respond to being lent money. You’re going to have to start engaging with credit responsibly to build your score up. Consider taking out a credit card and only using it responsibly. Never spend more than you can afford on it. Then make repayments on time. Consider using your credit card rather than a debit card for the usual purchases you’d make, then paying the credit card off with the money you would’ve used to make the purchase anyway.
Repairing Bad Credit
If you already have bad credit, you need to start working away at it. Create a budget and make sure you pay off all agreed payments as and when you’re supposed to. Your score will begin to rise as you show more positive borrowing behavior.
DETERMINING HOW MUCH YOU HAVE TO PLAY WITH
Of course, the property you buy will depend on the size of the mortgage you will be able to get. So, it’s a good idea to know what this amount is likely to be before you start setting your heart on any given properties. Use the best housing loan calculator to determine how much a mortgage broker is likely to lend you based on your income and the size of the deposit you’re planning on putting down.
KNOWING WHAT YOU WANT
Once you’ve got a decent credit score and know how much money you’re working with, you can start seriously considering getting a house. At this stage, you need to determine exactly what you want from a property. Here are some questions that you might want to ask yourself.
Where do you want to live?
First, you need to know where you want to live. This will give you a good idea of house prices and whether the area suits your budget. Wherever you want to live can prove to be achievable, you just need to make sure you’re completely settled on the location before moving ahead to other questions and determining other preferences.
What size property are you looking for?
Another important factor for many of us is the size of the property that you plan to end up living in. Some of us only need small spaces. If you live alone, something like a studio or one-bedroom apartment could prove perfect for you. However, if you have a larger or a growing family, you may need something a little bigger.
Are public transport links necessary?
Some of us haven’t used public transport in years, as we drive our own vehicles. But for others of us, public transport is an absolute necessity. If you rely on public transport, you’ll need to only look at houses that are within a comfortable walking distance of public transport links.
Do you need to be in close proximity to any amenities?
In a similar manner, if you don’t drive or don’t want to drive a long distance to get whatever it may be that you need – whether that’s groceries or products from other stores, access to a gym, access to entertainment or anything else – you need to take proximity to anything you might need into consideration when browsing the housing market.
Do you require specific amenities?
Homes have all sorts of add ons nowadays. If you’re house hunting, you need to determine which amenities you want your house to definitely have and which are just added bonuses. This will help to whittle out the options that would suit you.
Of course, these are just the bare basics that you need to be taking into consideration when getting started on your journey to buying the home of your dreams. This is an exciting venture to be undertaking, but you’re going to have to put a lot of time, thought and effort into finding something that really does tick all of your boxes and also falls into your budget!
