Becoming a homeowner is one of the most common life goals shared by millions. However, prospective first-time buyers are finding it harder to step onto the ladder than ever before. It’s a situation that has seen the average age of the first-time homeowner steadily climb since the turn of the century.

On the one hand, you cannot escape the impact of the economic situation. There have been multiple recessions in living memory, while lenders have become stricter. Still, these aren’t the only sources of struggle. Individual circumstances play a vital role. Some of the key factors are listed below:

They Haven’t Saved Enough

Property prices have grown at a substantial rate, easily outweighing the growth of salaries. Therefore, anyone wanting to buy a property will probably require a bigger downpayment. After all, mortgage calculations limit the amount of money that can be borrowed. Unless you command a very large salary, the mortgage offer won’t be enough to purchase a home without an initial outlay.

When saving for a down payment, using the right savings accounts and investment strategies is vital. Meanwhile, there are plenty of Apps and tools that are designed to promote financial responsibility. If a couple cuts its expenses by $100 each per month saves nearly $2,500 per year. This is before you’ve factored in the interest you accumulate. It doesn’t take long to build healthy reserves.

Many first-time buyers overlook additional costs, though. Property surveys, legal fees, and various taxes will all eat away at your capital. Do not forget to factor them in.

Their Financial Background Hinders Them

A mortgage is probably the biggest financial commitment that anybody ever makes. Therefore, it would be foolish to think that the process can be started without first tying up the loose ends in other areas of life. First and foremost, anyone thinking about an application should invest a little time into building their credit score. This can unlock more agreeable lending terms.

Good credit histories aren’t the only key feature, though. Existing debts may make a lender deem you to be a bigger risk. Understanding how to overcome problems caused by student debt, with DTSS, is a popular choice for millennials. Meanwhile, if open accounts on vehicles and other short-term loans can be concluded, it’s a move that will deliver excellent results.

Sometimes in life, short-term sacrifices are needed to achieve the bigger goals. This is undoubtedly one of those situations. This could include delaying the application for a little longer too.

They Want Too Much, Too Soon

Most people seek perfection in all aspects of their lives. The harsh reality for the vast majority of first-time buyers is that the dream home is not possible. At least not right now. In truth, anyone not planning to have children for a few years longer might be better suited to an apartment. It’s cheaper to buy, upgrade, and maintain. Financially and logistically, it makes more sense.

The other popular solution is to buy a property that needs a little TLC. A fixer-upper can cost significantly less than a perfectly ready property. Aside from allowing you to get more for your money, you’ll stand to make more money on your investment. There’s no rush to complete all upgrades, although getting a renovation loan is usually a lot simpler. After all, it’s far smaller than a mortgage.

There’s nothing wrong with altering the vision of the dream home. Besides, the satisfaction gained from seeing your vision become a reality is far greater than buying a new build.

Their Earnings Aren’t Enough

Even with a great understanding of how to save and find the right home at the right price, it counts for very little without good earnings. The reality is that lenders can only make an offer based on your income as they have a responsibility to protect a client’s finances as well as their own. For both single and joint applicants, a lack of earning power is the biggest threat to mortgage applications.

In an ideal world, increased earnings is the solution. Getting a promotion would be perfect, but working extra hours can be useful too. Cosigners are another option and the Money Under 30 guide analyzes the pros and cons. It’s not an option that works for everyone, but can be a great move for responsible applicants. Particularly for those that have rented at a similar cost to their mortgage repayments.

The fact of the matter, however, is that buying properties is a huge financial commitment. If the monetary issues don’t line up correctly, there’s no way that getting on the ladder will be possible.

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