Maybe you can afford to buy a house. How do you find out?
Take the first step towards buying a house
Start by finding out what you are spending and what your credit score is.
If you have credit card debt and a car loan these can both affect your ability to borrow to buy a house. If you have a poor credit score lenders won’t been keen to lend to you.
Before you start looking at houses or visiting a mortgage broker you need to do some homework.
How and where do you find your credit score?
You need to see what the companies who currently lend you money think about you. Register with a credit reference agency and download your credit file. Experian, Equifax, CallCredit and ClearScore all hold data about your finances and all are easy to find online.
You are aiming for a score of 900 or more to be considered for the best mortgage offers.
Now find out what you earn and what do you spend it on.
Download and print your bank statements for the past month.
Read your statement carefully to find out where your money is going. Are you spending a lot on one kind of thing? Clothes? Fast food? Nights out? Supermarket shops?
If you’ve given yourself a fright, stop spending on anything that isn’t essential for a month and see how much you can save.
If you have debts, see if you can use some of your new found savings to pay off cards or other loans. These small savings can add up and reducing debt improves your credit score.