If you are a single or working mom, then you will know how difficult it can be to purchase a house. Purchasing a house is significantly more difficult for single parents, but it can still be difficult for parents that work but don’t earn a lot of money.
There are a few ways that you can increase your chances of buying a house like getting a loan with the help of a mortgage lender like Next Level Lender. It’s important to consider each of these so that you are in the best position to buy your family home.
This article will tell you what these tips are and will explain how you can take control of your future and purchase a house:
Use Property Websites
When you are considering buying a house, the first thing that you should do is to check out property websites to learn how many houses are in the area that you want to buy in. As can be seen from the website of the property specialists from https://www.propnex.com/, property websites show you multiple options such as buy, rent, and sell, and allow you to search in specific areas. Getting an idea of how much you will need to pay for your property is a great way to start your property journey because you will be in a better position to start saving and building your deposit.
Start Building a Deposit
When you know how much you are realistically going to have to spend on a property, you can start building a deposit. The amount that you have to put down on a house is usually around 10% of the house’s market value. With that said, some lenders may allow you to put down less, as long as you buy your house through a government-backed scheme aimed at making housing more affordable for young people or the disenfranchised.
You may have to make lifestyle changes and cut down on expensive groceries and luxuries if you want to build a large enough deposit in a short amount of time.
Pay Any Outstanding Debts
When you have a sizable amount of savings, you should seriously consider paying off any outstanding debts that you have. The reason for this is that mortgage lenders might not give you a mortgage if they think that you will be unable to afford the property because of your pre-existing debts. They will include any debts and monthly repayments that you make in your mortgage calculator application, which they will have you do prior to getting an AIP (Agreement In Principle).
Clear off your debts before applying for a mortgage, so that you stand a better chance of getting approved for a house.
Check Your Credit Score
The next step is to check your credit score. Unfortunately, if you have a very bad credit score, mortgage lenders will be reluctant to lend to you. The reason for this is that a bad credit score is usually an indication that a person has not made very good financial decisions in the past or is reckless, which is a redlight for mortgage lenders, who only want to give mortgages to people that can be trusted to repay their mortgages.
Make sure you check your credit score before applying and if it is low, then begin trying to work on it and build it.
Research the Costs
Once you have checked your credit score and you are confident that you will be approved for a mortgage, then you can go ahead and check out how much the living costs will be in the house that you intend on buying, and how much the bills will be. Never overlook these things, because if you do you could end up buying a house that is actually too expensive for you to live in. If the house is in an especially affluent area, bear in mind that groceries are going to be more expensive.
Apply for a Mortgage
When you have considered every point that we have mentioned so far in this article, you can go ahead and apply for your mortgage! Remember, the larger your deposit, the more likely that you are to be accepted. Lenders prefer it when people offer large deposits. Small deposits are not received well. The larger your deposit, the less you will have to pay also. One last thing that you should consider before applying is the mortgage lender’s interest rates. If the interest rates are high, then you will have to pay more in the long run, especially if rates rise.
Buying a house can be very daunting, especially if you are somebody’s mom — even more so if you are a single parent. It might also be worth exploring mortgages aimed at single parents or working professionals, because they offer low-interest rates and deposits.