Buying your first home and getting your feet firmly on the property ladder can be a stressful process – but it doesn’t have to be.
Read on to discover our top tips for cracking the property market in 2018 and getting the keys to your first home.
1) Reduce Your Current Debt
Realistically, buying a property won’t be easy if you’ve already got a number of financial commitments each month.
First and foremost, the best thing you can do is work to reduce your debt. This could be anything from personal loans to credit cards but paying them down will make you a more attractive candidate for a home loan.
The less debt you’ve got, the more cash flow you’ll have to meet your monthly repayment requirements.
2) Save, Save, Save
In addition to paying down any debt, you need to have a detailed savings plan. From your monthly income, take out your cost of living (including monthly debt repayments) and then put a portion of the remaining amount into savings.
After you’ve done this, go back to your monthly budget and look for any areas you can potentially cut down on.
3) Maximise Your Savings Potential
After you’ve paid down your debt, it might be tempting to splash out with the spare cash you’ve got.
Resist the urge, as now is the time to maximise your saving power. Shop around for high-interest savings accounts and see which ones offer you the best rates for the lowest fees.
4) Check Your Credit Score
This is the part a lot of first-time buyers get nervous about. Your credit score is a number that shows potential lenders your reputation as a borrower. The higher your current credit score, the greater your chances of getting a home loan.
Factors like the number of credit accounts you have open, paying bills on time, and your employment history can all have an impact on your credit score. If you check your credit score and it’s high, congratulations – your chances of getting your first property just got better.
As with any large financial decision, if you’re unsure of what you’re doing, it’s best to seek professional advice. Speak with a mortgage broker or financial advisor to get extra information on the home-buying process and make sure you get it right first time.