This is a contributed post. Cover photo: https://unsplash.com/photos/jP_21V34SeQ
When it comes to buying your first home, you’re always going to want to do it in the best possible way for you. And that can differ from person to person. Some people want to stay at home with their parents and save up for the down payment, but not everyone can do that. What if you go to university and then get a job in a big city or somewhere away from home? Well, you need to rent somewhere to live. And that certainly makes it a lot harder for you to then be able to start saving up the money you need for your mortgage deposit. No matter where you are in life when you start to think about buying a home, or how old you are, there are some key things that you might like to know first.
How Long It Takes
First of all, it’s actually super handy for you to keep in mind just how long this takes. Think you’re just going to be able to pull together the money you need in a heartbeat? Maybe you will, maybe you won’t. But the time it takes to save for a deposit can take time. So just be realistic with yourself here.
What You Need
And then, there’s also what you need too. Because if you think that you just need the deposit, you’d be wrong. There’s paperwork that you need to think about here. You also need good credit. So, as you’re saving, make sure that you’re speaking to your bank and working on getting everything together that you need to be accepted for a mortgage.
The True Cost
Financially, it’s also great to know the kind of ‘true cost’ that you’re looking at too. Sure, you know the cost of a house, and you get that 10% savings figure in your mind, but what else might there be? Renovations? Legal fees? Bear this in mind as you’re saving. It could also be that buying a new build home can save extra costs, as well as provide you with savings benefits. So make sure that you consider all options during the process.
What You Want
But then also, you need to decide what you want. Because having the money and then house hunting is scary and you may find that you make the wrong choice. So try to get a clear image of what you want, based on your budget, so that you can make the best choice when it comes to signing on that line.
The Bigger Picture
And then finally, you might even want to start thinking about the bigger picture overall here too. because you’ll not just want to pick a house and hope for the best. It’s good to think about how long you plan to stay there, and whether there’s any potential there too. And not only that, but you might also want to think about whether you’re going to pay off your mortgage early or not. So really try to figure out where you plan to be when all of this happens.