Figuring out how to afford a new home is difficult. With rising costs, inflation, and stagnating wages, it’s easy to see why it’s getting harder. That doesn’t mean it’s impossible, however. Far from it. It could be more straightforward than you’d think.
You’ll have to put the effort into a few areas, as well as consider some non-traditional ways of paying for your home. Five unique ways to afford a new home can help with this. By focusing on them, you could be in your new home before you even know it.
You wouldn’t even need to worry too much about the repayments, so they’re worth considering.
How To Afford A New Home: 5 Unique Options
1. Negotiating Lower Interest Rates
The lower your mortgage’s interest rates are, the more affordable your home will be. You’ll end up paying back much less than you would with higher rates. Lower rates naturally means lower monthly repayments, which could be vital if you’ve a relatively tight budget.
It’s worth negotiating with your lender for your interest rates. You don’t have to accept the first rate you’re quoted, so take the time to negotiate with potential lenders. Shopping around and negotiating with different lenders lets you get the best rate possible.
2. Special Mortgages
There are more than a few loans you can get for your new home than you might’ve thought. All you’d need to do is know what’s on offer and how you can get them. Figuring out how to get a VA loan with bad credit, or any other type of loan, doesn’t have to be difficult, for example.
Then there are the multiple other special mortgages you could be eligible for. Quite a few public servants have these on offer, so they’re worth considering if you have a specific job, like a nurse or firefighter. If you’re in one of these roles, you could have a much more affordable option than you’d think.
3. Closing Cost Assistance
As high as your deposit might be, there are also quite a few other home buying costs to worry about. Your closing costs will be some of the more notable, and they could be much higher than you’d want. You’ll need to keep these in mind when you’re buying your home.
Thankfully, there are multiple closing cost assistance programs you can use to help with this. While they’ll all come with eligibility requirements, you could be eligible for more than a few of them. It’s worth looking into exactly what’s on offer and if you can get them.
They’ll make the initial cost of buying your home much more affordable.
4. Clean Up Credit
Your credit score impacts your mortgage much more than you could’ve thought. Higher scores could get you lower interest rates, while lower scores will mean you’ll end up paying more. If you want your mortgage to be as affordable as possible, you’ll have to work on your credit score before applying for it.
You’ll first have to get your credit score – which you can do for free – and go through it line-by-line. If there are any errors or mistakes, make sure these are corrected, and you’ll see a boost in your score. Work on anything else that might be holding your credit score down, such as unpaid loans.
5. Side Income
Even if you and your partner are working nine-to-five jobs, it can be difficult to save up for a down payment. You might be scrimping and scrounging just to do it. With a side income, however, you make this much easier for yourself.
While that naturally means working more, it speeds up how fast you can save for your deposit. Think of it as a short-term solution to help you save up. Even a few extra hours working every week could be more than enough to do this.
Blogging, social media marketing, and similar side hustles can all be recommended for this. You’ll have your down payment before you know it.
How To Afford A New Home: Wrapping Up
If you don’t know how to afford a new home, it can seem impossible. Having a house of your own might seem like nothing but a dream. It’s not. Using a few non-traditional ways to afford a new home makes it much more realistic, as long as you’re willing to put the work in.
Considering a side income, getting closing cost assistance, picking the right loans, and similar options will all help with this. While there’s still some work and effort involved in this, it’ll be much more achievable than you would’ve thought.