Buying a home for the first time can be a daunting yet exciting experience, but keeping control over your finances is a good rule of thumb before you enter the property market. To help you on your way to buying your first home, we’ve made a list of 3 top tips.
Improve your credit score
When you first apply for a mortgage for a villas for sale in Dubai, lenders will take a look at your credit history to see how well you have organised your borrowing in the past. With this information, they will then choose whether to offer you a mortgage or not, so it is vital that you look into ways that you can improve it. In order to improve your credit score, it’s a good idea to close any unused credit card accounts and ensure that you pay your debt repayments on time. Collect a copy of your credit report from a credit reference agency online and make sure that the information on it is all correct. If this is your first time borrowing money, take out a credit card and then make sure that you pay the full amount of the repayments every month.
Consider buying a home with friends or family
If you can’t afford to buy a home on your own, it’s worth asking family members or friends if they would like to buy one with you. If you choose to do this, however, it’s important to make it clear to them from the get-go what your plans will be if one of you decides that they want to sell at some point. It’s also important to think about how you will both divide the property, particularly if you are paying different amounts for the deposit. If you are buying the property jointly, you can either own the property as tenants in common or as joint tenants.
Apply with caution
When you are ready to apply for a mortgage, it’s essential that you read the small print first and avoid filling out more than one application to see if you can change your offer. Each mortgage application that you submit will be recorded on your credit report that will be read by credit lenders at some point in your life, which can affect your credit score. Sending multiple applications over a short period will make lenders suspicious that you are committing fraud or that you are desperate for money.
If you’re looking for a real estate agency that you can rely on to help you buy your new home either ready or off plan properties in Dubai, get in touch with the team at fäm Properties now.