Most people’s favorite hobby is spending their free time daydreaming about their ideal home, looking through property websites. However, most of the time, the ones you fall in love with aren’t within the budgets of the first-time buyer but can still be a great tool for goal setting. The unfortunate thing is that unless you are a cash home buyer you will need to take the time to save towards a mortgage deposit- especially if this is your first home. Here are some tips for saving towards your mortgage deposit.
Manage Your Budget
Understand your budget before you start saving. Start by looking at your income, and then outgoings such as your rent, credit card payments, utility bills, and food. Following that, and allowing extra money to go on additional everyday living expenses, begin to look at the places where you can start to cut costs.There will likely be things that you feel as though you can go without for a while if it means being able to save that 20% deposit sooner without impacting your day-to-day life too much!
Improve Your Credit Score
You can forget your chances of winning over any mortgage lenders if you have bad credit. The reason for this is that bad credit often comes when you can’t pay something back on time–and that makes mortgage lenders a little nervous. You need to have a steady credit history to improve your credit score as this shows that you are good at paying back what you owe on time. Start by paying off every single debt that you owe (within reason) and you will soon begin to build your score enough to where you’ll be offered better rate mortgages. That’s never a bad thing especially as you get further down the line with paying it all back.
Consider getting another job on the side
People who already work full time may find the prospect of getting another job very daunting. However, be assured that having a second source of income doesn’t mean having to work 80+ hours per week. In fact, you can earn significantly more money without having to burn yourself out in the process.
You could choose to write a blog, work some hours at a bar, or sell items online. Most of these options will be on a freelance basis, meaning that you can do as little or as much work as you have the capacity and time to do. Any extra money you have coming in will soon add up and you’ll be one step closer to saving towards a mortgage deposit.
Shop around for the best deals
Any large investment needs a good amount of research. That means you shouldn’t accept the first offer you are given when there could be something significantly better waiting for you around the corner. Getting the best deal can make a huge difference when it comes to being able to live comfortably or living hand to mouth each month. Make sure you’re not caught out due to your lack of research!