One of life’s biggest goals for most people is to buy a house, and why not? A house purchase often means security, a place that’s entirely yours and an inheritance for the children one day. Buying a house is not a cheap thing to do, nor is it easy to do. There are a good few things that you need in place to actually buy a house, and it’s going to take you time, money and a lot of stress to get you what you want.
Thankfully, there are only three important things that you really need to purchase your first home away from your parent’s. These are: a sizeable deposit, advice and a good credit rating. In this article, we’re going to explore each of these, so sit back and relax!
1. Deposit. You’d have to be living with your hands over your ears to say that you didn’t know this, but before you buy a home, you need to have a deposit to put down on the home, with a mortgage for the remaining amount. The deposit cannot come from a bank loan or even a private company like Snappy Payday Loans, as you have to be able to show that you have a good credit score to buy a home. While there are good reasons to have debt, you need to consider your score and your position when you want to purchase a home: the rules are far stricter than renting. Your deposit should be at least 20% of the house cost, though there are schemes that mean that you can have a smaller percentage. You should aim for the 20% regardless, as the more you put down, the lower your monthly payments.
2. Good Advice. You are going to get a lot of conflicting advice from people around you when you tell them that you’re going to buy a house. The only people that you need to talk to, though, are your bank manager, solicitor and financial adviser. You need as much good, sturdy advice as possible about your mortgage and the repayments involved. You also need smart information about the process and stamp duties and other taxes you need to pay.
3. Good Credit. It’s not going to be possible for someone with bad credit and lots of defaults to buy a home. Your credit is essentially your way to show the world that you are sensible with money and having a lot of outstanding debt and missed payments is not going to show people that. You are not a number on a computer, but your credit from the past can very much affect your future. Working on paying debts and improving your credit score over time is an absolute must before you go down the road of purchasing a new home.
Dream big when it comes to buying your new house. You’re going to need to dream big in a world of rising house prices, but that doesn’t make it impossible for you to be one of those on the property ladder!