Millennials are taking their time before getting onto the property ladder. Who can blame them? With house costs rising dramatically over the past few decades, it has never been more difficult to become a homeowner. So what are the secrets for young adults today to get on the first step of the property ladder? The challenges of raising funds to be in a position of considering properties might seem impossible to overcome. But it is just the beginning! Saving enough money – between 5% and 20% of a house value – takes time and a lot of efforts. There is, however, still a lot to come afterward!
Looking after your credit score
You need two things to get a mortgage. Firstly, you need to have saved the capital you need for the house of your dream. But you also need to monitor your credit score to encourage lenders to trust you with this investment.
Indeed, you can check your credit score ahead through a variety of applications and online services. Ultimately, improving your credit score will make it easier to get a mortgage loan. But it’s a long-term strategy that needs to develop over time. Keeping your credit utilisation low – aka not going too close to your credit limit – is perceived positively by lenders, for instance. Paying your accounts in full each month is, of course, a natural boost. You’ll find that if you keep your credit utilisation to 25%, making reliable and timely payments will be more manageable.
Comparing prices and financial agreements
Applying for a mortgage for the first time can be daunting. But, you need to be savvy about it. There are hundreds of lenders on the market. So it’s fair to say that you’ll probably receive just as many answers and offers. It’s a good idea to compare here first to find out about interest rates, eligibility criteria, and lending limits. This can save you a lot of time and money when you’re ready to apply.
All signed in? Build a nest you’ll love
First home means first-time decorating – if you’ve been a tenant before, you probably know that you have limited rights in a tenancy agreement. But when your home is a blank canvas, it’s essential to plan your home improvement investment carefully. Indeed, decorating your home can be an expensive project. You don’t want to waste any money on it. If you keep a strict plan with a budget and measurements of each room and item, you can gradually work towards creating accents, elegant focal points and picking a colour palette that fits your requirements.
Understand your responsibilities as a homeowner
Homeowners are responsible for their homes. Indeed, you need to know how to maintain your property, because every repair, transformation and renovation cost will come from your budget. Therefore, it’s essential to have a monthly, quarterly and yearly maintenance plan to check different elements in your home. This lets you identify potential issues on time and fix them before they can develop. It’s a lot of work, but you can’t afford to be lazy.
It’s fair to say that the first home you buy may not be your dream house. But, the only way to climb the property ladder safety is to manage to get on it first.