With real estate prices rising continuously year after year, it may seem that having a freelance job and owning your first home can be a pipe dream. However, as difficult as it sounds, it is still possible to earn money to buy your first home. In fact, it may be one of your top bucket lists as a freelance graphic designer because of the many advantages it can bring you. Mark Alvarado, a freelance graphic designer who just bought his home explains the benefits of finally owning your own abode:
- Your home can also be partially your office space – instead of shredding money by renting an office space, why don’t you have your graphic design office at home? You can set a partition in a portion of your home to meet your clients.
- Your home is your personal sanctuary – some flatmates or roommates can be annoying. It is difficult to focus on work if you have constant annoyances in your surroundings. Having a completely private space can help you reduce stress.
- Your home is an investment – any type of real estate is an investment on its own. You are not just spending money to stay in it, it is a property of your own. And we all know that houses appreciate over time.
As we come to understand these facts, Mark Alvarado shows us the basic principles of what he did to purchase his first home.
How to Purchase Your First Home as a Freelance Graphic Designer
1. Set the budget for the home you want to purchase
The first part of planning when you have your first home is to set your budget and the type of home you want to have. Do you want to own a condominium, your own single attached or detached home, or a townhome? What is the budget for your house? Do you want something much smaller and functional, or something larger that can accommodate a family? Most houses can have a price range of $150,000-$500,000 depending on the size and location. You need to set a realistic budget based on your income and what you can allocate for downpayment and mortgage.
2. Determine your average income and accumulate a steady amount of clients
The second step is to determine your average income as a freelancer. As a freelancer, it may be difficult to state a fixed amount of income as your salary can change per month. To help you stay on the safe side, you might want to calculate your average income or the least amount of income you can have in a month. You also need to have a steady set of clients who are willing to work for you, so that you will always be certain that you can pay your housing dues.
3. Scout for properties within or below your budget
After setting up your budget and payment plans, you can start looking for properties within or below your budget. Sometimes, it is better to get the least-looking house in a good neighborhood than the best house in a bad neighborhood. This is because you want a good environment for your home, as you are a freelancer.
4. Apply for a loan with proof of your income
After finding the best property based on your preferences, it is now time to apply for a loan. You can apply for a loan through a bank, credit card, or a credit union. There are also other companies who offer alternate loan options for those who have less than impressive credit scores.
Mark Alvarado states that having your first home as a freelance graphic designer can be very rewarding. It is one of the first major purchases that you can be proud of.