One of the biggest purchases you could possibly make in your adult life, is that of a house. It may be a bucket list item, but it’s one that comes with many dollar signs, some of which you simply cannot foresee. Most people think it’s a case of saving a deposit and the bank will give you a mortgage for your dream home – sadly, that’s not the case.
Buying a house comes with a lot of considerations, and not just the location you want to spend the rest of your life. There’s no other lifetime cost that compares with buying a house and no other purchase that requires you to put thousands of your own money into it, as well as borrowing more. There’s not much you can do about the climbing costs of buying your own home, but there are a lot of ways you can change your expenses and reduce costs.
Deposit:
It is common knowledge that a deposit for a house is 20% of the total value, right? Nope. You can get a mortgage with 5 or 10% of the money and there are many government-backed schemes that allow a lower deposit amount so that you can get on the property ladder faster. Your monthly repayments may be higher, as you have to pay an insurance premium on the mortgage but if it means spending less on a deposit, it’s attractive.
Comparison:
You need to shop around for as many costs as you can that are involved in your mortgage. Use companies like Conveyancing Direct to get more than one quotation for a property solicitor to help you with your house buy. You should also shop around for your actual mortgage, taking into consideration fees like stamp duty and interest rates. Gather as many quotes as you can for this, as you may find a bank that isn’t yours is far more favourable to you in their terms than your own bank.
Negotiate:
Closing costs can eat up a ton of your budget, but you can talk these down with the seller. Research the condition of the current real estate market in the area and use that as your bargaining tool. One of the best negotiating factors is how long the property has been on the market for and how desperate the owner is to sell up. If it’s been on the market for an extended period of time, you may be able to negotiate them paying all of your closing costs so that you can move in faster. It’s a winning situation all round, as the seller can finally shift their house and you’ve just saved some of your budget.
House-buying isn’t an easy process and it does take a lot of research. You don’t have to cut the quality of the services you get when you compare costs of mortgages or solicitors, but you should look at cutting your costs where you can so you get the best deal for your budget.
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