Latest posts by Rumona Apiyo (see all)
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As young person, the thought of ever owning your own home always excites you to the bone. As it is now, many people prefer buying houses as to paying rent. One of the major advantages of owning a house while still young is that you get to cut on costs.
There are also times when home owners can increase house rent taking advantage of the tax rates, however, if you own a house, you never get affected. Owning a house is rewarding more so if one is young, nevertheless, getting a mortgage to be approved as a young person is the hardest part.
The below tips might help you in making your home owning dream to come true.
Save money as early as possible
Many people once they get their first jobs resolve into partying most of their weekends. They would rather have the best clothes, have the smartest phones and so on and so forth.
However, if you want to own a home, you need to open up a savings account and save up money for your first down payment. Most banks ask you for a down payment of up to 3-10% once the mortgage is approved.
Apart from the making of your down payment, having money in your bank account gives you a consideration because banks and companies that gives house buyers mortgages prefer buyers that have assets whether in liquid or in cash. Having money in your bank account places you at a higher chance of being approved for a house mortgage.
Have a good history on your credit card
Another thing that will place you at a higher chance of your mortgage getting approved is having a credit card. If you do not have one and you would want to own a home while young, it’s a good idea that you start applying for one. After getting one, establish a credit card history that reflects timely payment of services and bills as well as spending. Mortgage companies and banks always make a follow up on how one uses his credit card to prove reliability when it comes to making the monthly payment.
The income requirements
One cannot be given a home on mortgage if he or she does not have any source of income. As the mortgage agent mainly uses your income to calculate your first down payment as well as the house one can afford which ranges between 30 -40%
Do you have a steady and stable employment history?
Apart from the fact that the banks and the mortgage company always evaluates your income and credit card history, they also take keen interest in your employment history. If you are working in a company that is not stable, the possibility that you will be approved for the mortgage is very low.
Again, if you wait till you are almost in the retirement age, there will be questions such as, where will you get your income? If you really want to have a home while young with fewer responsibilities, then you need to provide proof that you have a steady employment. In cases one is self-employed, the banks and the companies will require you to provide your tax compliance forms of up to two years.
Owning a home is very essential, if you want to have one via a mortgage, then one should start as early as possible. If you take the above tips into serious consideration and implement them, you will make your dream of owning a home come true sooner than you imagine.