If you’re thinking of taking the first step, and putting your foot on the property ladder, then you need to have the financial backing to make sure that you can sustain this journey. Needless to say, it is an exciting time, but you can get ahead of yourself in terms of what you can afford, so it’s important to stay focused on your budget and the monetary support available. We’ve put together a quick guide, so that you can see what your options are when it comes to funding the home of your dreams!
Speak to your family
If you’re looking to buy your first home but you’re not sure that you have enough of a nest egg to get you started, then speaking to your family and finding out whether they can lend you the money for a deposit is a good idea. Don’t make them feel like they have to give you the money and make sure you approach the topic in the right way, and ensure that you have enough money to not have to borrow from them again with regards to your home. If it makes them feel more comfortable, get a contract drawn up that you both sign, so that everybody’s mind is at rest.
Speak to a Hard Money lender
If you don’t feel too comfortable about approaching your family and asking to borrow money, then there are many companies out there who will help you to get your foot on the housing ladder. You can get a loan from a variety of places, so don’t make the mistake of thinking that you can only go to the bank, especially if you don’t think that you’ll pass a credit check or income verification. A Hard Money loan could be the best idea for you, and they’re on offer no matter what your situation is or where your property is currently at.
Rely on your savings
If you’re in a good financial situation and you have enough to cover any unexpected costs and emergencies that may arise, then you may be able to pay off the deposit, and the first mortgage payment, on your home simply by using your own savings. Whilst many people don’t have this amount, you may prefer to wait a while to get your savings up and use your own cash instead, particularly if you’re not fond of the idea of getting a loan. Using your own money can be a great feeling, but don’t cut yourself too short, and work out what costs you’ll need to pay beforehand.
So, there are many ways that you can accrue the money needed to buy your first home, and speaking to your family is one of them. Make sure that you get a contract in place, and don’t put them under any pressure to hold you up financially. You can also speak to a Hard Money lender to get the cash quickly and without a credit check, and if you’re in a good position financially, you can even use your own cash to get the ball rolling. Good luck, and happy house hunting!
