How To Get A Home Loan On A Low Income

Many know that it takes a combination of savings, a steady income and decent credit history to secure a home loan. However, low income workers are just as likely to own a house as somebody who earns in the higher income brackets.

If you are currently a low income earner and you want your own home, then here are some tips on how to get that ownership in no time:

Decide carefully

Choosing where you wish to live in is critical when it comes to obtaining home ownership. Living in the suburbs is a lot cheaper. You also need to consider whether you want a smaller home, or a house and land package.

Look for a low deposit lender

Most lenders want a 20 percent deposit. This can be reduced to five percent when you pay thousands in the Lenders’ Mortgage Insurance – a type of insurance that protects lenders. You may even find a lender that will let you own a house with as little as three percent deposit.

Access assistance programs or grants

You may have access to various assistance programs or grants that provide lump sums or discounts. Depending on your preferred home type, it pays to research on what you are eligible for. Make sure to get a lender who will accept such set up to lessen the amount you need to give upfront.

Attend free seminars

Many people have no idea how they can own a home. Luckily, there are free seminars out there that you can take advantage to explore all options available when buying your own house. You may also visit a broker to inquire and help you choose from the many home loan products being offered in the market. Attend as many seminars, and ask many people, as you possibly can to ensure you have all the information you need before deciding on a home loan.

Know that anyone deserves a home

Anyone can become a home buyer. Whatever your profession is, you deserve to own a house to live in. Saving up for your home deposit is crucial. It requires discipline and keeping your eyes on the goal at all times.

Regardless of income or occupation, planning for home ownership is essential and must be done as soon as possible. You will be in a stronger financial position once you have built your equity, because this means you now have adequate buying power to get your desired home. Take note of these tips and you can get your loan request approved in a jiffy!

  • April 28, 2017