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How to Afford Your Dream House

So you've found your dream home, or you know what you want your dream home to be like. You feel ready to make the purchase and move onto the next step in your life… but unfortunately there's just one snag. That dream home happens to be out of your budget.

So what do you do? Do you give up on your dream? Do you compromise and move into a home that doesn't appeal to you in the same way? Or do you get smart and start thinking of ways you can get that same wonderful property (or one like it) for less. Assuming the latter option is the one that appeals to you most (seeing as it probably is) let's aim for that…

Here are the steps you can take to afford your dream home…

Make a Lower Offer

A little bit of negotiating is normal when buying a property so remember that the asking price isn't necessarily the one you're going to have to pay. If you offer to move in right away, or if you have a good agent to represent you, then you may be able to get your property for less and that way still move into the one you've dreamed of.

If you're already a homeowner then don't forget that this works the other way too – take a hard line and try to get a little more for your property and you can then put that towards your new, more expensive home. They who dare, win!

Find the Right Mortgage

Really it's not the cost of the property that is going to create the real sting so much as the cost of the mortgage. This is what will determine how much of an initial deposit you have to put down, and it's also what will determine how much you pay each month. If you shop around, take your time and use the right websites, you might just be able to find a mortgage that makes the house affordable. 

Improve Your Credit Score

A great way to get a cheaper mortgage is to improve your credit score. This is what lenders look at when making up their mind about giving you the loan, so try to pay off existing debts/consolidate your loans and you might be in a stronger position to negotiate.

Go to the Bank of Mum and Dad

No one likes begging their parents for money, but if your folks do happen to have some stashed away you might want to consider this a coincidence. Not only is it worth damaging your pride for the sake of a wonderful home for you and your family, but it's also important to remember that this doesn't have to be a 'gift'. You can pay the money back with interest, or just offer to give them cash when you move again in future (with an increased value in line with the increased value of the property). This is really a win-win situation as your parents get to increase the money they have lying around in the bank while doing something to help their children live happier lives.


The other option is just to wait. While the property you want might go in that time, you can still take this extra time to save towards one like it and to improve your credit score. Work out how much you were shy of the amount by, and then write yourself a budget you can stick to in the meantime to bring yourself closer to that figure.