Buying a house is the goal for many of us. It can feel as though life is not complete until we have that home we can call our own. Renting may seem like the only way forward in this tough financial climate, but that doesn’t stop home ownership from being the dream. There’s no denying that you’ll have to work hard to achieve the goal. In fact, you may end up living with your parents until you’re in your thirties. But, when we want something, we’re all willing to make compromises to get it. The financial furies don’t end once you have a deposit, either. Until you’re holding the keys to your first home, your finances put things at risk. Again, though, working hard is key. We’re going to look at how best to get things under control. Don’t let financial fatalities kill your dream!
GET YOUR SAVINGS IN CHECK
Saving money is a large part of the battle. But, it’s one of those things that’s often easier said than done. One thing you can guarantee is that you’ll be saving for a long time. For the most part, patience is the best thing to see you forward. But with a little ingenuity, you can cut the time you’re saving for in half. You may want to save small amounts each month to help towards your goal, and there’s nothing wrong with that. But, if you want to speed up the process, you’ll need to get more serious. In reality, saving large chunks from each pay cheque is your best way forward. Spend a little time working out a monthly budget for yourself, and save everything that’s left over. It can also help to have a set amount in mind. Though, it’s important to note that house prices may have changed by the time you have enough.
Some people struggle to get on top of saving at all. If that applies to you, do everything you can to get your saving game in gear. Setting up a separate savings account is your best bet. Choose a high-interest option which will help you see some return on your money. If you struggle with discipline, get a savings account that you can’t access whenever you fancy.
THE DREADED CREDIT REPORT
When you do have enough money in the bank, you have to consider your credit report. No mortgage lender will let you off on this little snag. A bad credit rating could stop you moving forward, irrelevant of the work you’ve put in. The best thing to do is try to keep your credit report clean. Bear in mind that a bad financial move will stain your score for up to seven years. Whatever financial decision you make, keep your credit report in mind. Make sure to keep up with any payments. Even a 30-day late payment will have a detrimental impact on your progress. It’s far from worth the hassle!
If you’re ready to move forward, but your credit reports keep holding you back, there are steps you can take. Sites like https://creditrepaircompanies.com/late-payments/ give you the lowdown on how to improve any past mistakes. Sometimes, it may be possible to erase them altogether. Having the know-how is all it takes, so make sure you do your research.
CAN’T FIND ANYTHING IN YOUR BUDGET
We’ve already stated that house prices may change during your years of saving. So, what do you do when you finally have enough, but can’t find anything in your budget? It may be that you need to save a little more. But, if you take too long, you’ll find yourself in the same position. Another way around the problem is compromise. Being on the property ladder is your goal, but you may have to accept that you can’t buy your dream home straight away. Make a list of things you’re willing to compromise on, then start your house search again. Things like outside space, and dream location, may be goals to aim for in the future. For now, though, accepting something that’s less than perfect may be your best bet.
Use the internet to guide you to the best properties you can afford. Sites like www.realtor.com are fantastic here, because they allow you to get a good idea of what’s available. Make sure to look at as many houses as possible, so that you get an accurate impression of what you can afford. Knowing your options will allow you to make the best choice for your price range.