With experts claiming the return of a ‘buyer’s market’, many people are asking themselves – is now the time to buy a home?
If you’re thinking about trying to break into the housing market, there are a few things you can do to help make sure you’re ready to get started.
Start making regular payments to a savings account, and you’ll kill two birds with one stone. Firstly, you’ll be putting money aside for a deposit and other start up costs.
Secondly, you’ll be building up a savings history, which is evidence that you can save money. Most lenders require this evidence when assessing your eligibility for a home loan. Some lenders, such as HomeStart, will also accept a good rental history as evidence that you can make regular repayments.
Many credit card providers give you the option of reducing the limit on your card. Reducing your limit can be a useful way to cap the amount you buy ‘on plastic’, which could save you on interest charges and help you stay on budget. Lower limits are also helpful when you apply for a home loan, as the amount you can borrow is affected by your credit limits.
When you apply for a home loan
, you’ll need a variety of paperwork to get started. This could include payslips, bank statements, evidence to verify your identity and more. It’s a good idea to contact a lender and find out what you’ll need to have ready to get started.
Once you have an idea, you can start collecting the relevant information to have ready when you make the call to apply for a loan or Approval in Principle
These simple steps are a good way to get prepared, so that when the time is right to make the move into home ownership, you’ll be ready to get started straight away.