Saturday, November 9, 2019

Buying Your First Home... When You Freelance

Image Credit: Unsplash under Creative Commons

Buying your first home is an incredible achievement. It’s a sign that you’re ready for some real responsibility, as well as being financially secure.

But as a freelancer, buying a home can be difficult. There are more stringent checks that need to be carried out, as well as ensure you that you can prove financial stability for the duration of your mortgage.

While it sounds difficult, it’s not impossible, and the dream of owning your first home could soon become a reality. Take a look at these tips for buying your first home as a freelancer.

Build up a large down payment

To help put yourself in a more favorable position with the banks, you’ll want to ensure you have a large down payment to put down on your property. It can take time to increase your savings, but doing so will help put you in a better position financially, and means you won’t have to borrow as much.

It might be a good idea to take on some additional work while you’re saving and cutting back on your expenses, this will boost your affordability and make it easier for lenders to provide you with a positive outcome.

Get all of your accounts in order

The next thing you’ll need to do is make sure your accounts are in order. It’s a good idea to pay off your debts before you start looking at properties. Take advantage of some of the quickest ways to clear your debts to help you pay off your loans and credit cards.

Get your freelance accounts together to help prove your income to the bank. Using an accountant or online accounting software can make this part of the process easier, and will also be useful when it comes to your end of year taxes. Make sure you check all of the things you need from the bank in advance of any applications to save you time and to make sure you can collect everything you need.

Choose a property you can afford

It’s easy to get carried away with buying a property, but it’s important to buy a property you know you can afford. You could be surprised at the types of properties that are within your price range - you could find golf course condos for sale at an affordable price, that lets you enjoy all of the benefits of a new build property as well as some stunning surroundings. Choose a property with a high potential resale value - as a freelancer, your property is a valuable asset for your retirement, so you’ll want to know it’s going to be worth something one day.

Make a budget and stick to it

As a freelancer, your earnings can be unpredictable, so you’ll need to prepare a budget for your new life as a homeowner. Keep your outgoings to a minimum and prioritize your savings. Having a rainy day fund is useful for those times when your workload is quiet, as well as covering those home emergencies.

Being able to buy your first home is a great way to celebrate your freelance success. Get your finances in order and start looking at homes and soon you’ll be on the property ladder, with a bright future ahead of you.

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