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Buying a Home in A Couple of Years? Here’s How to Prepare for Your Mortgage

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Getting a mortgage is no small issue, and when you think about it, it essentially involves asking for more money than you probably ever have done before. It’s no wonder that banks like to make lots of checks and that it can generally be quite difficult to get the cash you’re after, which is why it’s so important to start thinking about your mortgage early and to start preparing for the process long before you’re ready to buy a home. The sooner you start preparing to ask for your mortgage, the more ease you’ll find you have in eventually getting one when the time comes.

So let’s say you’re thinking of getting a house in the next two years. How can you start preparing for that right now?

Saving

Saving

The most obvious thing to do when planning on getting a house in the future is to begin saving as early as possible. If you start putting money to one side right away, then you’ll be able to build up a pot that you can then use to make your deposit. Remember though it’s not just money for a deposit you’ll need – you’ll also need money in order to pay for fees, for tax and to keep to one side so that you still have some cash of your own. In short, you can’t save too much at this point.

Your Credit Rating

Another consideration is your credit rating. Early on you should get your credit score checked so that you know your current situation and what your chances of getting a mortgage are at this point. Then from there you should look into improving your credit rating every way you can – by using a credit card smartly for instance and by making sure you have lots of money saved.

Research

Also useful is to begin your research early on. That means looking into the various different schemes that might apply to you which could help you to get your home more cheaply – you might find that something like a ‘rent to buy’ scheme suits your position well and helps you to get a home that you otherwise wouldn’t be able to afford.

Likewise you should look into different lenders and types of loans to find out how and where you’d get the best deal, and you should look into different properties so that you know where you want to live and where you can afford to live. This will also help you to budget as you will have a better idea of how much money you’ll need.

Save to Buy

Another thing to consider is looking into ‘save to buy’ accounts. These are bank accounts that are specifically designed for people saving for their mortgage. These serve as a great way to prove to a bank that you can save and that you have enough money to buy a home, and they have good interest rates for helping you reach your target relatively quickly.