How To Take The Leap From Renting To Owning

This post contains some affiliate links for your convenience. Click here to read my full disclosure policy.

Having a home of your own isn't a reality for all people. This could be due to a lack of funds, a desire to not settle in one place for an extended period of time and instead fly around the world, or it could simply be something that the individual has never considered doing before. If you've ever considered owning a home but felt it was out of reach, you're in luck. This article will discuss some methods for taking the leap from renting to owning.

Save

A deposit is the first step toward owning your own home, and it's the most straightforward method. However, this isn't an ideal situation for everyone, especially if you're on a tight budget, trying to support a family, or already struggling to pay your other bills. It is not unachievable, simply depositing whatever you can afford each month into a high-interest savings account will quickly accumulate, enabling you to save enough for a deposit on a property while always knowing that you have backup cash available if the need arises.  Reputable banks like Evolve Bank & Trust have many free resources designed to help you get the most from your money.

Speak to a Financial Advisor

If you’re really not sure where to turn when it comes to valuable advice about getting onto the property ladder, it’s best to speak to a financial advisor. They will be able to provide you with Mortgage Lending Products that will help you get yourself onto the ladder. They will also be able to give you tailored advice on saving money for your deposit and being wiser with your spending.

Mortgage Broker

Approaching a mortgage lender is a slightly more unorthodox route to take. Mortgage brokers, unlike banks, are able to tailor a plan to your specific needs and get you the money you need much faster than banks. While the interest rate remains high, all repayments are included in an affordable payment plan agreed upon by you and the mortgage broker.

To avoid getting into a lot of debt, never lend money unless you're absolutely certain you can pay it back.

Find Nonlinear Solutions

Part-buy, part-rent is becoming a popular option in many countries and cities. This is done so that people who want to buy a home but cannot afford a big mortgage can still get on the real estate market. This kind of plan is typically offered by housing associations. You will own a portion of the property and pay off the mortgage with higher-than-normal rent. Buying a percentage of the property gives you the option of selling it back or purchasing the entire property.

For those who can afford to pay a higher rent in order to get on the property ladder, this might be the best option for them. You could lose your home if you can't pay the rent and the mortgage, so it's not a decision to be taken lightly.

Consider implementing one of these three suggestions and witness firsthand how simple it is to make that leap from renting to owning a home. Congratulations on becoming a proud owner of a new home!