There comes a time in every tenant’s life when the question comes to mind: does it make sense to continue renting, or is it time for me to buy somewhere of my own? This week, 1 OAK Apprentice, Ragesh Noronha, and I are going to walk these eager tenants through the next steps to achieving homeownership.
As I’ve mentioned in my First Time Homeowner blog series, the first stage of buying property is to get prequalified. A pre-qualification will tell you how much a bank or other lender is willing to lend you, which helps you to determine your mortgage goals such as a required down payment amount. Knowing your prequalification amount helps you to focus your property search in a specific budget range. Some people may find their first pre-qualification meeting at the bank intimidating, which is why 1 OAK Bahamas provides our clients with an easy-to-use prequalification calculator, assisted by our in-house mortgage specialist: https://www.mattsweeting.com/mortgage.
After getting prequalified and learning exactly how much you’ll need saved for a down payment, your next step is to actually save that amount if you haven’t already. For many people, this is the main hurdle holding them back from property ownership. However, if you’ve been managing your current rent and bills by paying on time and in full, you likely already have the financial discipline to save for your down payment. You will be surprised how having a specific, measurable goal will make it easier to reach this point.
As a bonus, you can also qualify for a larger loan if you are able to cover more of the property price yourself. For example, if you qualify for a $200,000 loan, but you have $50,000 in savings, you can still put the standard 10% of property price down at $20,000, and put the remaining $30,000 (minus closing costs) towards the buying property out of your own cash rather than the bank’s. This way, you would buy a property costing $250,000 rather than being restricted to a $200,000 property. You may also choose to stick with a $200,000 property, put $50,000 of your own money down and borrow less from the bank, which would give you more equity in the property and result in lower repayments allowing you to pay the mortgage off earlier.
Once you have your prequalification, your savings and your goal ready, you can contact our Real Estate Experts at 1OAK Bahamas to accommodate any criteria and price range. We are ready to assist you in securing lots, medium to luxury homes, multi family homes and apartments, and can even help you to find both an appraiser and a lawyer to close your sale.
After going through the process recently myself, I’m more than happy to help more people achieve ownership for the first time. Send me an email at firstname.lastname@example.org to start your journey from tenant to owner now.