Buying your first place is a huge thing to do. For some of us, it’s that first major step toward feeling like a real grown-up. After years of renting, taking the plunge into property ownership can be a scary proposition. So is it all worth it?
If you are considering buying, then it’s time to get your finances into good order. Mortgage companies look more favorably on those that have been in their jobs for more than a year. The longer, the better, as it shows you have financial stability in your life. When you apply for a mortgage, the lender will sift through all your bank statements for at least the last six months. It’s important you don’t have any wild spending sprees on there. Keep within a healthy budget during that time.
You’ll also need to detail the ins and outs of your monthly budget. Showing where your cash goes will be a priority if you want a favorable mortgage rate. Good lenders will want to see that the mortgage will work out cheaper than your existing rental expenses. They need to be certain you will be living well within your means.
This means you need to pick a property that you can comfortably afford to pay back. Some new apartment developments have many benefits for those looking to buy on their own. They offer more security, better locations and good amenities. Starting small now gets you on the first rung of the property ladder. This could be essential later in life when you need to house a family. With a few mortgage payments behind you, you’ll be able to buy something bigger.
Furnishing a home is never cheap. Choosing preloved items is a great way to save on the cost of moving. As a homeowner there will be many other costs you’ll incur. You might need to decorate and replace the floorings. This can be hugely expensive. Then there are the costs of upgrades or improvements that you might deem necessary.
As the owner of a property, you are also responsible for all the repairs and maintenance a home might need. Insurance policies can help protect you, but it’s still worth budgeting in a savings pot for emergencies on the house. You may need to keep the land around your property in good order too. Hiring a gardener may be expensive. It might be worth learning to use a lawnmower!
There are also essential insurance policies you shouldn’t go without. Protection for your salary and protection for the building structure could be the difference between keeping your home and losing it in tough times. Storms can devastate a property. And economic downturns could cost you your job. It’s important to know you won’t lose the roof over your head.
Many first time buyers choose to share their home so they can share the cost. Check your mortgage company and insurer is OK with you renting out a room. Buying a home is one of the most exciting and stressful things you can do. But it can also offer you security for your future. Happy moving.