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Ways To Overcome Home Buying Barriers

by Jim ONeil on June 14, 2011

in Mortgages

A recent Halifax survey revealed that though more people expect housing prices to fall than increase in the coming year, 80 percent of those surveyed do not expect their financial prospects to improve. Fifty percent of respondents said the next three months will be prime times to purchase a property.

However, many of them may not be in the financial position to do so.

Close to one-third of those surveyed reported that their finances were a barrier to purchasing a new home. To address this, these folks should prepare a household budget and identify areas where expenses can be reduced. Reviewing the credit report will provide the status of loans and credit cards.

It will also reveal whether the individual is in a good position to get a mortgage.

Raising a deposit large enough for home purchase was an issue for approximately 50 percent of respondents. Ten percent deposits have become more common, though individuals with the most capital will still find the best deals. Taking steps to consolidate and reduce debt can lower relevant interest payments.

Comparing prices and taking advantage of discounts when shopping leaves more money for saving.

Over one-quarter of the individuals surveyed commented on the lack of availability of mortgages. In reality, these loans are out there. To qualify for most, individuals must have outstanding credit. Simply registering to vote at the current address can improve the credit score.

Making timely payments on loans and credit cards shows lenders that the individual is reliable.

The economy bore a large part of the blame from survey respondents. Rising interest rates were a concern for 22 percent, while 52 percent worried their jobs were not secure. In March, unemployment declined by 416,000 in the UK.

By doing some research and getting their finances in shape, people may recognize the attractiveness of the property market.

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