Thinking about buying your first home, but worried about the financial side of things? Well, you have come to the right place, as below you will find some of the most crucial money-related tips that first-time buyers need to know. Read on to find out what they are.
Save a decent deposit
Yep, it might seem obvious but saving a deposit is crucial if you want to buy a home. Indeed, the more deposits you have, the better position you will be in financially. This is because you will end up paying less interest. After all, you will have a smaller debt. Additionally, those with larger deposits can often benefit twice and negotiate an even lower interest rate, so not only are they paying interest on less of a loan, but the rate will be more favourable as well.
With that in mind, doing all you can to raise a substantial deposit is a very good idea indeed. This may mean you need to borrow from family, sacrifice more expensive items like having a fancy car, or even moving back in with family while you raise your deposit. However, it should all be worth it when you come out the other side as a homeowner.
Work with a mortgage adviser
If you haven’t been through the experience of buying a home before, (and even if you have) it can seem like a very complicated, confusing and expensive process. That is why it pays to work with specialists like mortgage advisers who have devoted their whole careers to helping people find the right type of funding for their homes. Indeed, a good mortgage advisor will be able to talk you through the process of buying a home and help you get the best deal on a mortgage for the home you want.
Leave yourself enough to live well each month
When confronted with the chance to buy your first home it’s very easy to get carried away and end up committing to monthly payments that are larger than you first expected.
However, you must remember you will be paying your mortgage along with all your other bills for a long time. That means no matter how wonderful and shiny a home seems now, it’s important to leave enough money after you have paid your mortgage each month to still live well and do fun things.
Be mindful of all the fees involved with moving home
One of the biggest financial issues with buying your first home is that there are additional costs to consider besides the deposit you will need to pay. Often these will include the cost of a survey to check that the home you are considering is in good condition, as well as the cost of solicitors to help you close the deal, and then the cost of movers on the day.
Additionally, some people will need to buy new furniture because they do not have items that fit in their new home. Others will require funds for renovation and decoration as well, which can be a substantial amount. To that end, you must factor all these costs into the financial price of your home to check whether it is truly affordable for you or not.
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