The property ladder is a phrase we use to describe people who begin with a starter home and gradually work their way to the home of their dreams. Climbing the property ladder is normal. Even with a first-time homebuyer’s mortgage with a very affordable rate, most people need to start small and work up from there.
Whether you are looking to purchase your first home or are on the way toward the second rung of the property ladder, we can help. Our role as a Denver mortgage broker gives us access to a large selection of mortgage products with competitive rates and terms. As you think about that, we can also offer up our favorite tips for climbing the property ladder. Here are the top five:
1. Your First Home Doesn’t Have to be Perfect
Buying a starter home is the first rung of the property ladder. The most important tip we can offer here is to not be fussy about that home. You cannot start climbing the property ladder until you have a home to work with. So do not insist that your starter home has everything that’s on your ‘must-haves’ list.
It turns out that many of the things that first time homebuyers consider must-haves are really not. Being willing to sacrifice some of them in exchange for a lower purchase price gives you the opportunity to simultaneously build equity and put extra money away for your next home. On the other hand, stretching yourself to the limit with that first home could make climbing up to the second rung nearly impossible.
2. Use Mortgage Brokers Instead of Banks
As you climb the property ladder, you are going to need financing for each new home. We advise using mortgage brokers instead of going directly to banks. We don’t have anything against banks per se, but mortgage brokers represent more than one lender. More lenders mean access to more mortgage products.
You might be interested to know that mortgage brokers often have access to products that are only made available through them. These could be specialty products tailor made for buyers just like you. Even if a bank were to say that you cannot afford to climb to the second rung, a mortgage broker could probably find a product that works for you. As a trusted Colorado mortgage broker, we are here for you if you have questions or if you’re ready to apply. Reach out by calling us at (303) 779-0591, applying through our loan application, or scheduling a free consultation.
3. Keep Your Eye on the Prize
The generally accepted rule in our industry is that the property ladder has four rungs. However, your ladder could have more or fewer. Your ultimate goal is that dream home. That being said, our next tip is to keep your eye on the prize. Do not make decisions about your current home that will negatively impact your ability to climb to the next rung.
4. Look at Homes With an Eye on Selling
Every step to the next rung means buying a new house. While you are looking at new homes, look at them with an eye on selling. In other words, you’re going to keep buying and selling until you reach the top rung. Every intermediate home you buy along the way should offer some intrinsic value that will make it easier to sell. Do not buy a home that will be harder to sell even if it appeals to you at the moment.
5. Always Be Ready to Stop
Finally, always be ready to stop climbing the property ladder. There is no shame in that. If you are satisfied with the home that you are currently in, that’s perfectly okay. Stay there, save your money, and start planning for your future.