Deciding on Buying your own home is a big decision and can be quite a lengthy procedure. There will be financial costs along the way which is why it’s critical to be financially ready. For anyone who’s looking to buy their first home, below are some of our tips on how to be prepared.

Credit report

Your Credit history plays a big part in buying your first property. Lenders will check your recent credit history, and it’s essential that your score is acceptable otherwise you won’t be eligible for loans. If you already have a good credit score, you can request for a credit report and get a professional to double check everything before you hand them over to your lenders. For others who have a bad credit score, you’ll need to get your credit back in check, and this will require time and commitment. Your credit score can be gradually improved by paying off debts, paying off bills on time and ensuring your balance is in check.

Make savings

Applying for a mortgage without savings is impossible. It usually requires extra costs, and it’s essential to have your savings on the side in case you will need to pay for additional charges. To ensure you save a specific amount of money, you’ll need to set a goal per month on how much you need to save to achieve your long-term saving goal.

Clear your debts

Debts will have to be cleared to be eligible for loans. If you have a massive debt, it’s important to pay them off monthly as this also helps improve your credit score. You may also want to set a payment goal per month on how much you need to pay off to clear your debts in time.

Avoid credit cards

Did you know that opening up a new credit account can negatively affect your credit score? To maintain your score, you’ll need to keep away from opening up new credit cards especially when you’re working towards buying your first property.

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