Wednesday, 15 August 2018

Are You Financially Ready To Buy Your First Home?

from here
There is a lot that you need to consider when determining whether or not you are ready to buy your first home. You need to make sure that the area in question is right for you. You also need to think about whether or not you are likely to expand your family in the future, as this will dictate the sort of property you need. Of course, most of the questions relate to money. With that being said, read on to discover how to determine whether or not you are financially ready to buy your first property.




Are you debt-free?

There is only one place to begin, and this is with the dreaded D-word. Do you have debts? If so, you would be much better off paying these first, rather than trying to buy a property while you still have debts to pay. Put together a budget so you can work out how much you can afford to pay off any credit cards or loans per month. Head to debtconsolidation.loans if you are struggling to pay off your debts, as you may want to consolidate all of the money you owe so that it is easier to pay off. If you do not pay off your debts first, you will really struggle to get a mortgage. If you do manage to get offered a home loan, you can be certain that the rates will be extortionate.



Can you afford all of the costs?
 
When determining whether or not you are financially ready to purchase a home, you need to work out all of the costs entailed. This relates to the costs associated with buying the property first and foremost. You then need to work out what your monthly expenses are going to be to make sure this is something you can comfortably cover each month. Aside from this, you will need to make sure you have an emergency fund so that you can cover any unexpected expenses that arise along the way. For example, if your boiler breaks, will you have £1000-£2000 available to replace it?


Do you have a steady job? 
 
There are no guarantees in life, but it is important to have a job that is as steady and secure as possible. Head to forbes.com to discover the secret to job security. If you have recently started work at a new place, or you are self-employed and have only been so for a short period of time, it is better to wait at least a year until you start looking for a property. Not only is this better for your peace of mind but you will find it easier to get a mortgage and you will get offered better rates too.



Hopefully, you now have a better understanding as to whether you are ready to buy your first property. It is so important to have your financials in place if you are thinking about buying a property. After all, the last thing you want to do is realise that you cannot afford it halfway through the process or, even worse, once you have moved in and agreed to a mortgage.

Love,
Ieva

0 comments:

Post a Comment