Funding Your First Property Investment: 5 Tips for First-Time Buyers
Deciding to invest in your first property or family home is a significant step for anybody. However, finding the funds, you need to actually secure the mortgage you want to buy your dream home can be challenging. Undoubtedly, getting ready for this kind of investment in advance is key to having the funds you need readily available when you need them. But, implementing some budgeting strategies and finding new income opportunities can also be an excellent starting point to put together the money needed to put down the deposit required by a lender.
Save for a Larger Deposit
If you are afraid that your lender won’t grant you the mortgage you need to secure your ideal property, postponing the application date to a time in which you have a larger deposit to offer can be an efficient strategy. Indeed, the minimum required for a home is 5%. But, most lenders are likely to ask you for a deposit as large as 10% to 20%, depending on your specific situation. And, even in that case, putting down a larger deposit can increase your chances of securing a property.
Speak to a Specialised Broker
If you are self-employed, working in construction, or a CCJ influences your situation, you will need the help of a specialised broker. This strategy can help you identify the right lenders who have experience working with situations like yours.
While the broker’s fees might represent an investment at first, this choice will save you from denied applications, additional legwork, and hours of research. And, of course, it can grant you the funds you need to buy a home within shorter timeframes.
Start Budgeting and Saving in Advance
Buying a home is undoubtedly an exciting step, but it also represents the most significant investment you will face in your life. So, starting to save for it at least a year in advance can help you be better prepared when it comes down to applying for a mortgage. You can achieve your financial goals through accurate budgeting. A well-crafted budgeting plan should include all of your incomes and expenditures, analysing the areas that still hold potential for saving more.
Make The Most Of Schemes Aimed at First-Time Buyers
Some government schemes are expressly designed for first first-time buyers, such as:
- Help to Buy
- Right to Buy
- Right to Acquire
- Shared ownership
- Shared equity schemes
- Starter Home scheme
These schemes can help you better afford a more suitable property or a larger house, without the need for additional funds. Knowing the options available to you is an excellent way to save a little more.
Find a Passive-Income Stream
If you are juggling all the tasks implied in buying a home while also keeping up with your full-time job, the time and energy left to improve your finances and saving more money for the property can be limited. So, a passive income stream can help you improve your finances with minimal effort and time investment. Among your most profitable choices, you can invest in the stock market or Trade Forex. Before getting started with your account, make sure you have got the hang of the basics of this strategy!