If you are keen to move on from being a seasoned renter to own your own little patch of bricks and mortar, it’s time to put down roots.
Owning your own home allows you to build up equity within an asset and means that you won’t be lining the pockets of a landlord anymore. Buying your first pad can be nerve-wracking – you need to apply for a home loan, find a decent real estate agent, and sort out your finances ready for moving day.
While stressful, the moment you pick up the keys to your first home and spend your first night in your own dwelling, it will all have been worth it. Take a look at these three sure fire ways to make a seamless transition from renter to homeowner.
Finances
Make sure that you don’t dip into your savings or head into your overdraft for at least three months before you apply for a home loan. You need to appear the epitome of responsible borrowing. You can have a credit card, but make sure you pay off the balance each month. This shows a lender that you can manage credit and debt effectively.
Ensure that you don’t go for the flashy car before you buy your first home. Wait until you have the keys in your hand first. All of your financial ducks need to be in a row, so ensure that you live well within your means.
When applying for a home loan, you need to have as large a deposit as possible which means saving all of your disposable income. The larger your deposit, the better loan to ratio value interest rate you can obtain on a mortgage. You also have less of a chance of slipping into negative equity should the market take a downward turn.
Moving Day
The day of your move may be one of the most stressful of your life. Before the big day arrives, ensure that you have hired a reputable local mover well in advance. If you don’t know your brown tape from your bubble wrap, opt for a team that can come out and sort your packing for you. They will have all of the materials and packaging equipment needed to protect the fragile antique mirror that you inherited from your grandma.
Keep an essentials box that you have packed with you at all times. This should have a kettle, some healthy snacks for the kids, some mugs, a bottle of your favorite tipple, and some kids games. This will enable you to have a celebratory toast as soon as you move in rather than having to rifle through your boxes.
Location
When considering where to live, ensure that you select a region that is well established. Those up and coming areas may have been up and coming for decades never to become somewhere pleasant. Instead, you need somewhere that has a great property market history.
Think about low crime rates, excellent schools, and decent transport links when selecting where to live. You also need to consider the style of home you would like. Some people love period features whereas others are keen to live in the height of modern decor.
Follow this guide and you will make a seamless transition from renter to homeowner.
