You’ve managed to complete school and possibly college, you’ve secured a job, and now you want to achieve perhaps the most desirable task of adulthood. Often buying your first house can be more complicated than any of the previous tasks combined. Here are some top tips for securing your first home.
Secure a loan that’s not based on your financial status
One of the significant hurdles that prevent most people from securing their first home is money. Although you might think you’re ready for the responsibility of owning a home, mortgage advisers often need more convincing before they lend you the money to buy a house. They’ll assess everything, including your job, your bank statements, and even your bills and how you spend your money day to day. Even the smallest problem, like a late payment on your credit card bill, could end up being seen as a massive red flag by a traditional provider.
Hard money lenders like Sachem Lending offer bridge loans without needing to verify your income. They look at the value of the property rather than your personal circumstances. This means they are more likely to offer you a more significant amount. You can apply online and could have the money you need approved and available to you within days. A bridge loan like this basically gives you breathing space for a few years to be able to buy your house and then improve your financial status so you can secure more conventional financing.
Improve your financial status
Once you’ve secured your property with a bridge loan, you’ll want to start thinking about how you can make yourself look more appealing to traditional mortgage providers. As tempting as it might be to fill your home with brand new furniture, try and avoid buying anything on finance. There are many cheaper alternatives, or you could even try and build your own furniture using the many online tutorials available.
As well as resisting the urge to buy, you’ll also want to try and reduce some of the debt you owe. If you have credit cards or loans, try, and come up with a plan to spread the cost of paying these off over the next year or two. Consider whether you really need to be paying monthly for things like gym memberships or even whether you could reduce your cell phone provider’s monthly cost.
One of the most important things to remember is that this is called the first step on the property ladder for a reason. You might not be able to afford the house you want to end up in just now, but that doesn’t mean you won’t be able to in the future. Find the right home for you that’s comfortably in your budget. Then in a few years, you’ll hopefully be able to sell it for more than you bought it for, have a bigger deposit, and be able to afford to take the next step.