31 Mar 5 Top Tips for Affording Your First Home
| Just as with saving for any large expenditure in life, when it comes to buying your first home, there are things you can easily do to help your money pot grow larger, and to make decisions that will not have a negative impact on your future finances. Here are 5 top tips for affording your first home and getting your foot firmly on the property ladder: Think carefully about location Many of us are drawn towards buying central properties because we believe them to be more convenient, or even more fashionable, but we often pay a hefty price for the privilege. Typically, central properties are a lot more expensive, and you rarely get as much for your buck as you do when you step outside of the downtown core area. There may be many more affordable housing options on the city fringes, and once you’ve researched public transport options, you’ll probably find that you can easily and quickly get to where you want to go with minimal hassle. Engage with a mortgage broker As professionals who dedicate their lives to finding great mortgage deals for their clients, a mortgage broker should be one of the first people you speak to when thinking about buying your first home. Not only can they get you some great deals through their extensive connections to various lenders, but they can offer you honest advice and guidance to ensure that you don’t end up paying more than you can afford for a mortgage. The pre-qualification process can also be extremely helpful in highlighting any areas that you could improve on to make you more accessible, to more lenders. Some of these areas may include: Increasing your credit score Decreasing or consolidating any existing debts Increasing your overall income Think about using a co-signor While you take steps to increase your personal income, consider using a temporary co-signor for your mortgage; you can devise an exit strategy to remove them when necessary with the help of a mortgage broker or financial advisor. Could a rent-to-own property work for you? RTO’s can give you the opportunity to rent out a property while you save for a down payment. While not an option for everyone, it’s worth giving some serious thought to. Make your money work for you A financial advisor, and even to a certain degree, a mortgage broker, can help advise you as to any steps you might be able to take to make your money work harder for you while you save to buy your first home. Sometimes, it can be hard to see where you can save any money, but with some smart, savvy decisions and small, simple changes, you might be able to save more money than you ever thought possible. Carefully consider all your options when thinking about buying your first home, and try to be open to suggestions – provided they come from a reliable source, such as a qualified financial advisor or experienced mortgage broker. Stepping up onto the property ladder is no mean feat, but it’s an exciting one, and working with professionals can help the entire process feel much smoother and less confusing. |