MoneyMagpie

May 16

How to afford a home

As we begin to get older, there are new goals that we set for ourselves, and one of them is buying a house. It’s one of those landmark moments where you become a real adult, because you’re responsible now – you’re a homeowner. At least, that’s what everyone hopes for. The thing is, it’s a lot easier said than done. It’s not as simple as looking through web searches, finding a home you like the look of, and then buying it. (If only!) There are so many things to do in terms of preparation, along with many legal documents that need to be read properly and signed, not to mention the cost.

Buying a house costs an awful lot of money. This isn’t said to scare you off – it’s just the truth. And not many people are able to pay for it directly out of the money they have in their bank account – unless you’re one of the rich and famous.

Because of this, you may start to become stressed, and pressured, because you know what you want – it’s right in front of you – and yet you aren’t able to hold it in your hands. That stress may then grow and grow until you’re consumed by it, and that’s a very slippery slope to go down. So you need to think positively. Sure, you may not have the money right now this very second, but that doesn’t mean that your dream of owning a house can’t come true. There are options out there, you just need to look in the right places.

Here are some examples.

 

Get a loan

This is one of the most common ways to ensure that you have the finances you need for owning a home. Essentially, a loan is given out by a bank or company after you tell them how much money you need and they have agreed that you are eligible. This is often considered depending on your credit score – if you have a bad one, people will be less willing to lend you money. Once you have been given what you need, you are then bound by a contract to pay it all back, as well as the interest rates too, and these vary depending on how long you take to pay it back, and how much of a sum you pay back every month. It’s important that you always read the terms and conditions though so you’re absolutely sure of what is asked of you. If you’re not sure, you can look at go-to secured loan guide for some more information.

 

Get a higher paying job

If what you’re currently doing now isn’t paying you anywhere near enough money for you to start saving up a decent amount, then it may be time to consider asking for a raise, or just finding yourself a higher paying job. This isn’t actually as hard as you may think it is, you just need to do a little bit of research so you’re aware of how different industries pay their employees. If you’re lucky, you will be able to find a similar role, but for more of an income. Or you may have to delve into a different sector or career altogether. While this may seem a little scary, it will be worth it when you’re saving up double, if not more, than you were in your previous employment. So even if you’re required to go through a training course for the experience – so be it.

 

Move back in with family

If you’re currently renting somewhere while you work until you can finally afford to buy a home, you may want to think about moving back in with family, be it your parents, your siblings, or someone else that is willing to take you in. Think about it, although you lose a little of your independence, you will be able to save up so much more money because you’re not flushing it down the rent drain. Of course, you can offer to pay something every month to help cover the cost of you living there, but that won’t be anywhere near as much as you were paying when renting, so think about all the extra money you’ll be able to keep in your pocket. So bring the conversation up and see what your family’s view on it are. The sooner you drop your lease, the more money you will begin to accumulate.

So now you have a few ideas, think about what will work best for you.

 

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