Homeownership is a big dream that many of us want to achieve, but it’s not for everybody. Homeownership is a huge responsibility. Aside from maintaining your home and doing some ways to improve and secure it, such as adding some decorations and installing blinds or aluminium screens Perth, you have to ensure that monthly mortgage and taxes are paid on time; otherwise, the bank will end up owning your property.
However, for students like you, it’s a good thing that you’re now thinking in advance about buying a home. The process of buying a property is long and complicated; so it’s important to be prepared and well-informed. The following are some tips on how you can buy your first property.
First things first: Plan
Homeownership is not like buying a piece of dress in a retail store. It’s not even like buying an expensive electronics or a car. A home is a very huge and life-changing investment, so you have to approach it with utmost care. Before anything else, it’s essential that you think about your priorities and needs carefully. Know first where you want to live, how big of a house do you need, what type of a house do you want, how many people are going to be living with you in that home, etc. Also think about the future – are you planning to be married soon? If so, do you think your future spouse will like the property you’re considering? How about your kids? Is it spacious enough to accommodate the whole family comfortably?
Home buying is one of the most complicated financial transactions that anyone will ever undertake. And if you’re not familiar with the process, you’ll get easily overwhelmed by it. Some people easily give up when they realize that there are so many unexpected home-buying duties that need to be done. So read some books, search online, ask people you know, and if possible, attend some training in order to learn and understand the process of home buying. Familiarize yourself about the different types of homes available, where to find mortgage funds, how to qualify, and how to pay it off fast.
As you know, a home is an expensive investment. Just paying for that required 20 percent down payment is a struggle for many. So while you’re still in college, it’s important to start saving already. This will give you a lot of time to collect the money you need for the required down payment and other expenses. Most lenders will not only need a down payment; they will also want to see that you have at least six month’s worth of mortgage payments available before they grant you a loan. It’s wise to open a savings account and set aside as much as money you can every month.
Establish your credit score
Having a good credit score is one key to get a loan approval, so it’s important to start building your score now and keep on improving it. The more credit history you have, the more chance you’ll get a home loan, as this proves you’re a responsible borrower.