There are some key stages in every adult’s life. Getting a first major job and securing a regular income is one such example, along with deciding to start a family and preparing your home for the new arrival. However, before most people decide to start a family, the major life step of securing a mortgage on their first home needs to occur. In 2023, the act of getting on the property ladder for the first time is one that requires a significant amount of planning and preparation.
It should be recognized that securing your first home can be difficult for several reasons. For example, securing suitable savings to put a down payment on a property can be challenging when inflation levels are high and wages do not always rise in line with the general costs of living. There are several factors to consider when attempting to get on the property ladder, and in this article, two top tips for first-time buyers will be explored in detail.
Start budgeting early
It is of paramount importance that both budgeting and saving take place early in preparation for purchasing your first home, as a down payment will need to be made on the property to secure it. Depending on the type of mortgage that you decided on, this amount could range from as low as 3% of the total cost of the property to around 20% of the total value.
However, it should be recognized that even a 3% down payment on a $300,000 property will still require the need to fund $9,000 upfront before the mortgage is secured. For many people, this represents a significant financial investment and will require saving to take place for a number of years.
Therefore, it is important to start budgeting well ahead of schedule when you are planning to buy your first home. Create a monthly budget with your total income and outgoings and determine how much money can be saved on a regular basis. It can also be beneficial to use a down payment calculator to get a better understanding of what your finances will be able to support when it comes to paying for your first property.
Talk to mortgage experts
Another key tip is to talk to mortgage experts early in the process of seeking your first property. A mortgage expert will be able to guide you through what can be a complex journey with multiple key steps that need to be completed before you can complete the deal. Mortgage experts will be able to show you a range of mortgages that suit your personal circumstances and will also be able to help you plan your budget to ensure that you can comfortably afford suitable properties.
If you live in the southeastern region of America, it can be beneficial to talk to experts who will be able to help you find a mortgage loan in North Carolina. By doing this you will be able to find a loan that considers your total level of income and gives you a monthly repayment amount that you can comfortably afford, whilst still leaving money for regular expenses and outgoings.
To sum up
When planning to buy a property for the first time, budgeting effectively and speaking to mortgage experts are two of the key steps that should be taken. By undertaking these you will be sure that you can afford the ongoing costs of owning a property whilst still being able to plan for the future.
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