No two humans are the same. But most people share a set of common goals in life; fall in love, have children and find a great career. Another target that we all strive for is the perfect home environment.
Whether it’s a big family home or a bachelor pad doesn’t matter. We all want a great place to live, but there’s one major stumbling block. That hurdle is money, and it can feel unsurmountable when your financial history is poor.
But it doesn’t have to put an end to your dreams of buying the perfect home. The blocks may be higher than ever before, but they can still be cleared. And the advice below should help you on your way.
Clear Other Debts
Borrowing money for a property will become the biggest debt in your life. To give yourself the best chance of obtaining this sum of money, especially if you have a bad credit history, is to clear your existing debts.
This won’t only help your application, but it will help you find a new starting point for building a better future. Taking on a mortgage on top of already mounting debts is ill-advised – and that’s assuming you’d ever get accepted.
this guide should help you clear those accounts. On a personal note, this should take a huge weight off of your shoulders. As far as securing your dream home is concerned, it can be crucial. After all, borrowing more money will become a lot harder if there’s proof that you’re already struggling to pay back existing debts.
Make this the time to stop making late payments and other decisions that will go against you. It’s all about priorities.
Save A Bigger Deposit
If you have a poor credit rating, it is going to impact your possibilities. Even lenders that accept your application are likely to cap your maximum mortgage at a relatively modest amount. Therefore, your only realistic option is to have a bigger down payment.
The importance of this task cannot be emphasises enough. Quite frankly, you’ll have to start saving now if you’re serious about securing your dream home anytime soon. Improving your habits will help, so you should be eager to reduce spending by cutting internet bills and other needless expenses.
These savings will help long-term, but you need an immediate boost too. When you do enter the dream property, it will be a fantastic chance to declutter your life. Why wait? Selling your unnecessary items could help you raise a significant amount of money.
Finally, if you want your deposit to enjoy good health, be sure to put it in a high-interest savings account. It sounds silly, but that extra interest could make all the difference. As a last resort, you could always borrow some money from friends and family. However, you should try to avoid this at all costs.
Find The Best Mortgage Provider
Regardless of your financial situation, finding the best mortgage lender should be a high priority. After all, buying a property is the biggest financial decision that most people will ever make. It’s only natural that you crave the best solution for your needs.
In your situation, a bad credit mortgage broker is probably the best option. As long as you’ve got a deposit saved, the experts can usually find a way to help your dreams become a reality. In truth, knowing the options available to you will clearly make things a lot easier to digest.
The key is to work to your specific circumstances. Credit scores and history will play a fundamental role in working out the best option available. This is why professional help is advised. Besides, a wider selection of choices will provide the greatest chance of finding the ideal solution.
Having the best person working for you will give you that extra degree of confidence too. This in itself can be very valuable throughout the process.
Be Prepared To Work A Bit Harder
A poor financial history can make life a little more difficult. But it doesn’t have to slam the brakes on your dream. However, it might require you to move the goalposts a little. You have a vision in your head, but there’s nothing wrong with taking a slightly different journey. As long as you reach the perfect destination, that’s the only thing that matters.
No home is going to be perfect as it is. Every property will require a level of personalisation. Most will also require a little upgrade work. However, you could save yourself a serious amount of money by taking on a project that requires further restoration.
Buying a ‘fixer-upper’ will cost a lot less, even after you’ve spent money on restoring it. You’ll be paying yourself thousands for taking on the project rather than buying a home that is already in great condition. Better still, you’ll be completing the work to your specifications.
Upon completion, you’ll be presented with the perfect home without spending as much money. Moreover, the increased property value makes it a fantastic investment opportunity. Not only will you be getting the home of your dreams, you’ll be building a better financial future too. What more could you ever want?
Consider Moving Away
Another aspect that can impact the cost of a property is geography. Relocation isn’t a viable solution for everyone. For some, however, it can be the key to finally making those dreams a reality.
Of course, there are other factors to consider. The main one is career choices. If you are self-employed or work from home, though, it makes every sense to find a location where you are getting more for your money.
The variation doesn’t just occur in different parts of the country. You could get a far better property for your money by simply moving five miles away from the central business district of your chosen city. This means no need for changing jobs or losing friends or family.
No-brainer.
Check Credit Score
Having a bad credit score is one thing, but having one that contains inaccuracies is another altogether. And it could be costing you dearly.
Of the three major credit score websites, Experian is probably the best. You can acquire a report for just £2. However, if you sign up for the free 30-day trial, you’ll be able to check the information for errors. If you do notice any, getting them rectified is a must.
The credit score isn’t the only deciding factor for lenders, but it will play a vital role. Besides, making sure yours is right will aid applications for smaller credit amounts too.
Make Current Home Sell
It’s not only first-time mortgage lenders that struggle. A change in circumstances can mean that your current home is no longer suitable. This could be due to seeing the family grow in numbers or a whole host of other reasons. In any case, getting a better property can still prove to be difficult.
One of the best ways to make it that little bit easier is to make the current home more valuable. There are various projects that can actively boost the price of your property. Moreover, making these upgrades can promote a quicker sale too. After all, many potential buyers would rather buy a property that needs minimal work.
As well as completing jobs to increase the value of the current property, you should also look for ways to reduce the cost of selling. There are many hands that will want paying throughout the process. Finding cheaper solutions will soon make a noticeable difference to your situation.
And with a better sale price, you’ll be in a far stronger position. In turn, this should give you a much better chance of finding the home of your dreams.
Maintain Steady Work
Another item that can go against you is changing jobs too frequently. Lenders need to see stability. Once you gain this, your chances will be far greater.
That doesn’t mean you can’t take a promotion or change company. But you need to show that you’re in long-term employment and have good job security. Ultimately, there needs to be proof that you can afford to make the mortgage repayments throughout the duration of your contract.
Prove that you can do this, and you’re golden.
Find A Co-Signer
If you’re still struggling, then you always have the option of getting a family member to be your mortgage co-signer. If their history is good, it could make all the difference to your application.
Essentially, lenders just want their money to be repaid. Whether that comes from you are the co-signerdoesn’t tend to matter too much. This can be particularly useful for self-employed people that are finding it hard to prove their long-term income
Be sure to be honest with yourself, though. Failure to make repayments is going to cause major problems for your co-signer. It’s not worth losing relationships over your inability to pay. If you need more time to get your finances under control, then that’s fine.
And there you have it. Follow those tips and, one way or another, you should secure your dream home.
(Original Post: http://www.propertyowl.co.uk/afraid-bad-credit-will-stop-you-from-buying-your-dream-home-read-this/)