A down payment on a house is a strong detracting factor from many potential homebuyers who feel like they don’t have quite enough excess money saved to pay a deposit that can be as high as 20%. Because of this, many people stay stuck in the trap of renting a house instead, throwing money to a landlord with no hope of ownership at any point in the exchange. Paying for someone else’s property is no fun. If you’re tired of the rental trap and want a way to escape it, pay close attention to these 7 ways to hunt and buy low deposit homes.
1. Look for potential building opportunities
Some services that offer no deposit homes build customized homes on pre-selected pieces of lands, both sold together as a package. These services offer no deposit or small deposit homes built to your specifications, with customized additions like swimming pools. If you want a home that’s your perfect starter home, these services are often the best place to look.
2. Use Listings Online
Online services are usually better than local businesses because they have a more massive inventory and set of investors that create a far better buying experience. You don’t have hidden fees or outlandish fees for the search because there is generally no search on some of these services. They simply build your home from scratch or have pre-selected properties that match your credit and borrowing history.
3. Work On Credit
Credit will play an important part in getting a no deposit home. While not everyone with “bad” credit will be turned down, it’s likely that interest rates will be higher if your credit isn’t up to par. Taking some time right now to straighten out credit, even a little at a time, will increase your chances of finding a no deposit option that’s perfect for you. It’s your first step toward getting out of the rental trap.
4. Consult Family
Your family is often your biggest supporter in life. If you’re interested in a no deposit home, there are often times when a co-signer can help you qualify for certain programs. Many family members, or even good friends, might be willing to help you with a bit of their own good fortune (good credit) and sign away on your behalf.
5. Always Investigate Neighborhood
If you’re buying a house and land package, you’re not alone. It’s a popular option among buyers these days. If you have a house and land package that you want a no deposit option on, you’ll want to make sure that the neighborhood itself is up to your standards. Look for good schools for kids, low crime areas, and comfortable neighborhoods. Visit the neighborhood and see if it’s up to your standards.
6. Rely On Your Service
If you pick the right no deposit service, you’ll find that the professionals there work in more than one area of real estate. They’re available to help you with financial aspects of the purchase, searching for the home, and discussing your land options as well. What you want most of all is a service that’s a “one stop shop.” You want a service that can help you with every area of buying your home. They should be courteous, friendly, but most of all, they should be knowledgeable about the housing market and prepared to help you with every facet of the buy.
7. Keep A Positive Attitude
As you’re searching for a no deposit home, attitude is an important part of your search. A good attitude prevents you from the sometimes frustrating areas of the hunt and buy. There will be a large number of documents you may have to come up with. Always keep the big picture in mind, the end goal, and you’ll be much happier during your search.
Each of these tips make it more pleasant, and exciting, to hunt and buy no deposit. You’ve decided that this option is the best way for you to get out of the rental trap (and it is). Applaud yourself for your decision to go no deposit, don’t look back, and keep a happy attitude.