Last Updated on December 18, 2024 by SampleBoard
If you dream of becoming a homeowner but worry about financial issues, you are far from alone. Thousands of prospective first-time buyers are in a similar position.
And while past financial problems may put some additional obstacles in your way, turning your dream into a reality is possible.
However, you will only make this happen if you take responsibility and analyze your options. Here are some key steps that may allow you to climb the ladder.
Unless you win the lottery, a mortgage will be needed to make your homeowner's dreams come true.
If saving for a deposit seems challenging, exploring low deposit home loans for first home buyers could be a viable solution.
These loans are designed to make homeownership more accessible, offering a pathway to secure your first property with less upfront financial strain.
Less options may be available due to DMPs and low credit scores, but that doesn’t exclude you from receiving an offer.
Working with the right mortgage lender and gaining an offer in principle will allow you to start looking at properties. Another option is to ask your parents to be guarantors on your mortgage.
In the meantime, saving a large deposit will be very useful. As well as strengthening your overall buying position, it decreases your loan-to-value ratio. This will give you a far better chance of being accepted.
If you want affordable housing, careful considerations should be made about the location. Generally speaking, the north is cheaper than the south.
So, if you’re flexible on where you can live, relocating could be the best way to start a new chapter in style.
Most towns and cities have cheaper areas even if you wish to stay local. In many cases, moving away from the CBD will reduce your costs. But not always.
Conducting your research in different locations will allow you to find one that balances costs with quality of life. It will provide a valuable step toward making your homeowner dreams a reality.
Another way to find an affordable property is to target homes that need work. The truth is that you will be looking to stamp your authority on the new house anyway.
The money saved for a cheaper place can be used to decorate it. This is a great chance to unleash the latest bathroom trends or adjust the property to suit your needs.
You should find that the value of the home quickly improves, too.
Fixer-uppers are readily available through auctions as well as traditional listings. Meanwhile, owners of inherited properties, for example, may be willing to drop the price further.
So, you can get more for your money.
Even if you are accepted for a mortgage, it doesn’t necessarily mean you can afford your dream home.
When buying the entire property is outside your capabilities, it may be worth looking at shared ownership.
This means you will buy a percentage of the property while renting the rest.
It can be a good way to climb the ladder when traditional methods aren’t available, or you need a more significant property than you can afford.
You will lose some money from rental payments. However, your monthly outgoings are reduced. The rental agreement has a lower interest rate than virtually all mortgages.