There are a few issues that can stop you in your tracks when you're buying a new home. Indeed, it’s not always as easy to get on the property market as most people assume. You have to think about whether you can afford to buy, if it’s the right time and if you can get a great mortgage.
The Right Time?
Generally speaking, the housing marketing goes through highs and lows throughout the year. If you are buying a home for the first time and don’t have one to sell look for a slump in the market. This is when house prices crash to their lowest point. If you are currently buying in the UK, you’re in luck. Brexit has severely damaged the housing market. But, once article 50 is implemented it could get even worse so you may want to wait.
Can You Afford It?
You need roughly five percent of the asking value on a home to put down as a deposit. However, most financial experts suggest you raise far more than this to get a great mortgage deal. If you don’t do this, you’re probably looking at a far more expensive mortgage. You can remortgage once you’ve bought the home, but this makes things more complicated.
Is Your Credit Healthy?
Finally, if your credit is poor, you’ll struggle to get a good mortgage deal on a new home. In fact, the only mortgage deals you’ll be able to get will be based on bad credit. These are debt traps, and that’s why you need to work to improve your credit score before you sell. The infographic below can help with that.
Infographic Credit: credit related tips for borrowers