collaborative post // Getting on the property ladder is one of the main components of a safe and secure life. It is a symbol of maturity and relinquishes you from the burden of paying rent all your life. However, getting on the property ladder is not that easy.
House prices are high; rents are high, which makes it hard to save for that deposit; you need a good credit history, a steady income, etc. sometimes, it may seem as if owning a property is nothing but a pipe dream. However, there are ways and means to get established in the property game. Here are a few things to think about:
A Steady Income
If you plan on getting a mortgage, then you are going to need a steady income. You will need around three to six months of payslips to show any potential mortgage lender, and the more you earn, obviously, the more you can borrow.
If you do not have a steady income, then it may be time to start a job hunt, as, without one, you are likely to get turned down at every corner.
Save as Much as Possible
In most cases, you need at least 5% of the property value to put down as a deposit. This results in a pretty large sum of money. In some cases, you may be able to get a 100% mortgage, but these are the exceptions.
So, you need to start a savings account. This may mean you change your spending habits. You might need to stop buying certain things or shop at cheaper stores; perhaps you are in debt and are finding it hard to keep up.
Now is the time to see a financial planner and get things sorted. You may have bad credit now, but getting things in order will help you develop good credit.
When you see a mortgage advisor, they will help you to understand if you may be eligible for a mortgage despite the bad credit. Savings are a huge bonus too. If you can save, this shows that you can manage money,. So, do what you need to do to get a savings account growing.
Set Your Expectations
Seeing a mortgage advisor is a good step as you will discover what you can borrow and work out a price range for your house hunt. A mortgage advisor can let you know if there are any potential issues and what you should concentrate on fixing too. It is always a good idea to find out exactly where you stand in the real world.
The House Hunt
This is the fun part, where you actually start looking for that first property. It is wise to look at as many houses in as wide a search area as possible. The more you see, the more you will get a feel for the houses in your price range, and with this knowledge will tell you if you have found a real bargain. Try and see at least three a week or more.