Young First Time Owners: To Dos and Not To Dos

It would be a fair assumption to make that many people in their early twenties strive to be a homeowner at some point in their lives. But it does also seem to be one of the hardest things to do in today’s climate. This tends to mean that people stay in the private renting market, and find it difficult to take that step into home ownership. But, you can do it sooner rather than later by taking the right steps now to make it happen. Here are some of the things that you could do.

Monitor your credit rating

When you begin to explore the idea of obtaining a mortgage, you will begin to realise that your credit rating and the history you have becomes extremely important. You may have already made mistakes with credit. Perhaps missing the odd payment here and there or running up debts. But, that doesn't mean to say you can’t take action now. One step to take would be to consider monitoring your credit moving forward, and there are some great services available. You only have to look at the credit monitoring services review to see that. You might also want to look at the history that is already there, and work hard to try and improve your score, and also to ensure that all details held on file are correct.

Remain consistent in your job and career

When obtaining a mortgage, you will be asking for a large sum of money, after all, it will be one of the most expensive purchases you make. But a mortgage provider will also want to ensure you are creditworthy, and along with your report, they will look at your employment history. Before making this decision, try and gain some longevity with the company you work. At least being there for six months before applying. This shows that you have a consistent wage and helps with the affordability factors. Lastly, if possible, try and avoid any big career breaks between jobs.

Save as much as you can

There is no hiding from the fact that you now need a deposit to ensure that you can get on the property ladder, and many mortgage providers will want around 10% of a purchase price of a home. Saving is going to be important, so try and ensure that you live frugally for a while to save as much as you can. Little and often amounts will soon add up.

Take advantage of government schemes

These days there are many government-led schemes you can take advantage of, and one popular one revolves around first-time buyers and shared ownership schemes. This can help you get into a new home without needing huge deposits upfront.

Avoid moving around

Finally, you may want to think about consistency with your home address as well, as again this will be something that mortgage underwriter will look for. It helps to gain a record and history of you and enables banking records and identification to match up.

Let’s hope this guide helps you to become a homeowner in the future.