Nowadays, more and more people are renting, as it’s feeling more difficult than ever to get on the property ladder. Saving while paying high rent rates may be difficult, but it is possible. If you really set your mind to it, you may be able to get there! Now, buying is definitely preferable to renting if you’ve decided where you want to settle down. After all, why spend your whole life paying someone else’s mortgage when you could be paying your own instead? Here are a few steps you can take to get your foot on the first rung of the ladder!
First, you need to budget. People on different incomes can afford different properties. So, it’s a good idea to determine what kind of property you’ll be able to afford. This will give you a view to see what you’re saving for and how much of a deposit you will need relative to the overall price of the property. Use your salary and determine exactly how much you can commit to mortgage payments once you’ve saved your deposit. If you’re struggling, a financial advisor can help you with this.
Next, it’s time to start saving. Once you know the property prices you’re looking at, you can start saving roughly 10-15% towards the deposit. To achieve this as quickly as possible, you should contribute as much of your disposable income as possible into a savings pot. Sure, you’ll still want to do nice things or treat yourself once in a while, but the more money you put away, the sooner you’ll find yourself in the house you want. Find a savings account with a high interest rate. This will make the process easier.
Finding the Right Estate Agent
Once you have saved your deposit and are ready to start house hunting, it’s time to start browsing properties. An estate agent will be able to help you to do this. They will essentially serve as a middle person who can let you know about properties that are available and suitable for you. They can arrange viewings of properties or display homes and also negotiate on price on your behalf. Once you’ve found the right property and your offer has been accepted, they can also take care of legal paperwork associated with the sale for you.
Finding the Right Mortgage Lender
Once you’ve found the house, it’s time to apply for your mortgage. There are countless lenders out there, so browse the market and find the option with the lowest and most competitive interest rate attached. This could save you a whole lot of money in the long run, so make sure to dedicate time and effort to this.
As you can see, a lot goes into buying a house. But all in all, it’s entirely worth it! You’ll live in the place of your dreams and you’ll actually own it at the end of the process!