Your Financial Options When Buying a House

| May 21, 2015 | 0 Comments

Are you still struggling to get your first foot on the property ladder? It’s a big struggle but have you looked into all your home buying options yet?

Buying with Cash

Everyone would love to be able to pay for the home with cash, but how realistic is it for most of us? It means saving up a significant sum of money, so it’s only for people with patience and the ability to save money. But if you don’t want to get tangled up in debt and mortgages, it could be worth the wait.

If you have a family you can live with this can allow you to save money quicker. Private landlords will charge you much larger fees than your parents, so put away the money you save and eventually use it to buy a home. And, of course, the cheaper the property you go for, the quicker you’ll be able to afford it.

Getting a Mortgage

For a lot of us, the most obvious and perhaps safest option is getting a mortgage. Lending rates aren’t at the best level right now, but people are still as keen to buy properties as ever before. You should think carefully about your circumstances and how much you can afford to pay in mortgage repayments each month before taking out a mortgage though.

If you’re struggling to find the down payment for a mortgage, there are still options open to you. You could find a mortgage lender that has low down payments rates. Lenders that are backed by the FHA have favorable rates and are pretty easy to qualify for.

Buying with Friends

If buying a home by yourself is too big a financial burden for you to bear, the answer could be to spread the costs. If you and a group of friends all find yourself in a situation whereby you’re looking to buy a home but can’t quite afford it, buying together is an option to consider carefully.

It isn’t an option without risks, but if you know your friends well, trust them and will feel comfortable living with them, it could work out well. There should be a written agreement made between you though. Don’t cut any corners or take risks. You’re all friends now, but you could face problems if that changes and you’re not prepared.

Lease Options

Lease options are a way of buying a home that have become much more popular over the last few years. They’re certainly not for everyone, but they’re worth considering. Under a lease option, you will rent the property for a certain length of time and then when the agreement is up, you’ll have the chance to buy it.

It’s like a try before you buy scheme, and that’s maybe why they’re proving so popular with people currently struggling to get on the property ladder. It allows you to live in the property even if you can’t afford the down payment yet. You can then save your money and pay the down payment once the rental agreement is finished.

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There are more options open to you than you might have thought when buying a house. So, don’t be downbeat, explore these options!

Category: Home Loan

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