11.11.2017

Things to consider before buying your own home

Owning your own home is a lot harder to achieve nowadays then it was for our parents or grandparents. We have a lot more worries to consider, and a lot more prices to cover, and that often makes the entire venture seem a lot more trouble than it’s worth. Here’s some considerations.

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What Insurance You’ll Need

When you want a mortgage, it’s usually a stipulation that you’ll need some home insurance as well, despite this not being a mandatory part of owning a house. Yet there’s plenty of cover available out there, and finding the right one for you can often dupe a lot of us out of the correct option for us. Look into the type of protection homeowners insurance can offer, and note down all the places something could go wrong.

Keep your house safe. It’s not nice, but think of all the things that could affect your quality of life, whether it be a fire or a flood, and make sure you find an insurance company that takes those ideas into account as well. Similarly, if you see yourself being away from home for more than 30 days at a time, you may also have to find a policy that specifically covers that, as being away for this long can invalidate the cover you’re looking for initially.

Check Out Your Credit Score

When you have a good credit score, you’re going to score well with the mortgage companies. It’s a mark of a trustworthy lender-lendee relationship, and means your monthly payments on this kind of loan are going to be lower than average. You can instantly improve a credit score by making sure any settled debts have been removed from it, so be sure you double check.

Similarly, having a bad credit rating to show a mortgage lender is better than having no credit score, so don’t be too worried about your score being below 700. It doesn’t penalise your chances completely, and you can go looking for a lender willing to take out a ‘bad credit loan’ on you.

Have Some Savings

Usually you’ll have to fork out for a down payment or a deposit, and that means you're going to need to have enough money stored away to manage this on top of everything else. Yes, buying a home can be very stressful, but that doesn’t mean it can’t be done. First stop is the savings account, which may need some building up to make sure you can make the process go a lot smoother.

Building a savings account is going to be the number one priority in this situation, so make sure you have some stored away already, and then keep up the habit. Having a sizeable deposit for yourself, something like 2 or 3 mortgage payments stored away, is a good sign for any lender if you need a hand with any other payments.

Buying your own house is a huge step, and you’ll love being able to settle down!

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