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Over the past few years, my husband and I have been busting our booties in order to purchase our first home. We FINALLY accomplished that in the Summer of 2018. It wasn’t an easy task, but we knew what we had to do and we did it.
Thinking of buying your first home isn’t a decision that should be taken lightly.
While the dream at the end of the road is to have a roof over your head and to eventually become more financially stable, there’s a long ways until you actually get there. Have you ever taken the time to figure out exactly what you need to do to get the ball on the road? To help you out, here’s a guide on how to begin buying your first home.
Clear your debts
The one thing that people fail to do before buying their first home is clearing their debts. It’s important to do this so that when you do get your new home and begin paying towards your mortgage, you’re not drowning in debt in other areas.
Even smaller debts such as the ones you owe to your electric company should be cleared so that not only are you debt free, but you can work on your credit score.
People often shy away from even looking at their credit report, but it’s actually more important than you think. Lenders look at your credit score before approving anything you’ve applied for, and if your credit report shows that you’re not very good with money, you’re likely to get a high interest rate or even a refusal altogether.
Once you’ve cleared your debts, keep an eye on your credit report so that you can begin building up your credit score ready for when you apply for a mortgage. Clearscore is a fantastic app that’s completely free and gives you tips and tricks on how you can improve your score over time. The better your credit report, the lower your mortgage rate will be.
Calculate what you can afford
We all dream of a house that you could play baseball in but in reality, you need to sit down and work out how much you can afford on mortgage repayments each month. If you’re unsure on how to do this, Altrua Financial are able to offer their expert advice and also give you the chance to use their online calculator to find the figure you’ve got. Once you know this, you can then work out what sized property you can ideally afford.
Save a deposit
The next step is to save for a deposit on your new home. This might take some time, but you’d be better off saving as much as possible so that ultimately, your mortgage repayments are lower and the amount of time you’re paying is lower too. Perhaps you’re able to stay with some family or friends while you save the money for your deposit?
Buying a home isn’t an easy process, but if you begin your journey with these steps you’ll soon find yourself with the keys to your very own home! Good luck with becoming a homeowner!