6 Ways to Get the Home of Your Dreams Faster

Anyone who has ever bought a house before knows what a long and gruelling experience it can be. If you want to buy a new house for the first time, there are certain ways to speed up the financing process. Those with bad credit will especially want to get this information because of how beneficial it can be. Property values are still climbing, so you will want to get a good deal on a nice house while you still can.

Before You Get Started

There are some things that you should keep in mind before trying to get financing for a new home. The very first thing you should do is to figure out if you can really afford to buy a house in the first place. Too many people rush into buying a home, only to discover that they cannot afford it. The more time you spend looking at your finances, the better off you will be in the long term.

You should also decide how much you are going to put down on the house. A deposit of 25% is pretty standard, and it’s a good way to minimize your interest rate. Anyone who is interested in buying a house should stay away from the zero percent down loans that only exist to scam first time buyers. If you don’t have enough money to put down a decent deposit, you should take some time to save up before moving forward.

1. Explore the Help to Buy Scheme

The “Help to Buy” scheme was started back in 2013, and it is essentially a home equity loan option. This can be an excellent solution for first time buyers as well as those who want to move from one house to another. Those who take advantage of this scheme only need to put down 5% of the house’s total value. This is a particularly good option for those who don’t have a ton of money saved up but feel like it’s the right time to buy a house regardless.

This scheme applies only to houses with a value of under £600,000, and it is available until 2020. You won’t have to pay any interest for the first five years, which is a huge plus. After the initial five year period, you will pay an interest rate of just 1.75%. The rates you get with loans through this scheme are significantly lower than most others.

2. Help to Buy ISAs

A Help to Buy ISA is another option for first time homebuyers, and it offers many benefits. If you are saving up for a deposit on a home, this scheme can help you out a lot. All you need is £1,000 to begin, and put just £200 each month into it every month. Eventually you will receive a 25% bonus from the government. There is a maximum of £3,000, but it can be incredibly helpful nonetheless.

3. Right to Buy

If you live in the UK and rent a home from your local council, you could be able to buy the home at a very reasonable overall amount. In order to qualify for this steep discount, you will need to have rented the property for a minimum of three years. A lot of people are taking advantage of this scheme because of how much money it can help homebuyers save. This scheme covers housing association tenants who live in England as well.

4. Private Lenders

You might associate buying a home with going down to a bank or credit union, but they certainly aren’t your only options. When you need the money for a new house, private lenders have much to offer. These lenders are largely based online, and many of them are highly reputable. There are a lot of reasons to consider going through a private lender, such as lack of credit checks.

Many private lenders do not run credit checks on those who apply for loans with them. This means that if your credit score is low, you won’t necessarily have to be worried about being turned down. You can apply for loans through private lenders online, which is very convenient. The whole process of getting a home loan from these lenders is very simple and easy.

5. Shared Ownership

This option involves buying only part of a house from a housing association or local council, and renting the rest. You will be required to obtain a mortgage for ¾ of the home’s overall value. After you get the mortgage, you will pay rent on the rest of the share but with the option to buy a larger share in the future.

6. Starter Homes Scheme

The Starter Homes Initiative was initiated back in 2015, and it has helped many people to get affordable homes. These homes are available at a 20% discount for first time buyers that fall between the ages of 23 and 40. If you are having trouble finding affordable housing that fits within your budget, there is a good chance that this option can help tremendously.

There is a maximum home value of £250,000 for homes with this scheme, but it is going to go up to £450,000 for those who plan on buying in London. While this scheme might not be for everyone, it is certainly worth exploring before making a decision.

Don’t Rush into a Decision

The worst possible thing that any first time homebuyer can do is to rush into a final decision. Buying a house is a big deal for most people, so it’s not something to take lightly. The more you explore these options, the easier it will be to get an affordable home fast. The fact is that this process doesn’t have to take forever. Even those who don’t have much money in their savings accounts can still find a way to buy a home in the near future. This information will help you get your dream home sooner than you ever thought possible.

Leave a Reply

Your email address will not be published. Required fields are marked *