It’s harder than it's ever been to get on the property ladder. House prices have continued to soar, but since the financial crash in 2007, banks need a significant deposit before agreeing on any mortgage.

Where younger people are concerned, it can be quite hard for them to save up the required funds to get on the ladder. Not only that, but there are multiple pitfalls which can make homeownership even harder. The first stage is becoming informed. Of knowing what you need to do to get on the ladder. Once you know what to do, and how to do it, you can start saving and ensure that you get the most for your money. It’s all in the research.

These tips can help you get started. Just remember, everyone is different. That means some advice might not apply to you. Try to imagine how it would work in your circumstances. Always apply the advice in a bespoke way. Even if you’ve considered these before, they can help you shift your thinking towards a different perspective and make strides towards homeownership.

Know What’s Offered In Your Area

It’s important to know what kinds of mortgages are offered in your area, and for what kinds of home value, you’re looking for. Interest rates can change quickly, especially for real estate investors so there’s no point looking for access to calculators when you’re years away from finding a mortgage, but knowing what’s offered in your area can inform your saving plan. You’ll know how much the homes you’re thinking of buying are being sold for.

Do the same if you’re thinking about buying in another city or even country. Doing this initial bout of research might be a little disheartening because you’ll see right off that there is a bit of a distance to go, but it’s completely necessary. It’s also a good time to know what lenders are operating in your area. The national lenders are a given, but sometimes you can get cheaper rates with those operating just in your area of interest. Again, rates are always changing as are providers themselves.

Don’t just rely on your usual high street realtors to find your perfect home. There are plenty of websites which give you an idea of what price point houses are selling for in your target area. Finding a site with a top rated home search for Rancho Cucamonga, or whichever zone is your desired area will come in good use. When buying a property, any ground work you can do in advance with be worth it.

Start Working On Your Credit Score

Lenders won’t approve your application if they see that you’ve got a bad credit score. They need to see that you can properly manage debt and that you aren’t going to default on what will likely be the biggest purchase you ever make. Some people will naturally have good credit, others will have bad credit, but arguably the worst credit is having no credit at all. If you’re in this boat, and you have a bit of time before you have to get a mortgage, it might be worth taking out a payment plan for something low price, or getting a credit card to start to build your score up.

If you go for the credit card option, your best bet is to buy something small on there a few times a month and pay it off right away. Doing so will increase your credit score, thus making you more appealing to lenders down the line. If you’ve got bad credit you might find it hard to find a credit card provider willing to lend to you. But there are some specialising in bad credit, the APR may just be astronomical though so make sure you have it paid off in full each month before the interest drops in. The earlier you do this the better. You need to know where you are at with it too, so consider signing up to a credit reference agency. There are plenty of free ones out there too.

If you have a low credit rating, a subprime mortgage may be an option. The interest rate with a subprime mortgage is often high to compensate lenders for taking the risk on that borrower. Be sure that you can cover the repayments before taking out this type of loan.

Come Up With A Saving Plan

Saving the deposit is your number one priority. It isn’t always easy. Especially if you aren’t living with parents and are paying high rent, or if you’re looking to save up on your own. However, people do it every day so it is possible. You just need to come up with a plan. Sacrifices will be needed too. Try to cut down on the amount you eat out for food. Instead, focus on the amount you’re saving. You might also need to cut down on holidays and other big spend items. Don’t buy a new car...keep your expenses to a minimum as best you can. You might even need to think of another job or side hustle to help out.

Always save as soon as you’ve paid...don’t be one of these people who commit to saving whatever they’ve got left at the end of the month because it just doesn’t work. You need to ensure you save a certain amount. Some say 10% of your paycheck is a good amount, but if you’re living at home you will want to aim for far more if possible. If you’re up for making the required sacrifices, you can really end up making a killing and driving towards your goal.

Learn How To Negotiate

Learning how to negotiate will be useful when it comes to buying your house. Most of the time, if not all of the time, you can knock some money off the property. Sometimes homes will sell for above the advertised rate when a bidding war erupts, but you should try to avoid these. If you learn how the property market works, you can negotiate. But to negotiate, you need the right ammunition. This comes in the form of knowledge.

If you think the home is marked up a little too high, or if you’ve had a surveyor out to check the home and they’ve found something, you can use that to knock the property value down a little bit. Or, if there is significant work needing doing, the current occupier might decide to do the work themselves...which could satisfy you just the same. You need to know not when to overextend or overplay your hand. Negotiating is fine, but if you take it too far, you might lose credibility and the agent may refuse to deal with you anymore...so don’t take it too far, be careful and measured in your approach but never be afraid to make an offer below asking price.

Disclosure: This is a collaborative post.

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