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Last Updated on by Noni May
Buying your first house or apartment is one of the most exciting steps you’ll take in life. It’s a sign of true independence and a reflection of a lot of hard work. It can take many years to save for your first property, but it will be worth it when you get there.
Saving for your deposit is one of the biggest challenges you can face to get on the property ladder, but wholly satisfying once you achieve it. But while you think you’re over this crucial hurdle, there are still other costs waiting to come the way that you need to be prepared for.
Find out what to expect for your finances when it comes to buying your first house.
The deposit is one of the biggest payments you’ll ever make. The higher the deposit, the better as you’ll need to borrow less and can benefit from lower monthly mortgage payments. But many homeowners start with anywhere from 5 to 25% deposit, which can be a great start to buy your first property. Save based But on how much you know you can borrow – this will help give you a clearer indication of the kinds of properties you can buy too.
In the world of buying a property, it costs money to borrow money. It seems unfair, right? But for most mortgage products, this is necessary. Working with a broker can be a good way of making sure that the mortgage you apply for is the right one for you. There are all kinds of things to consider when making your application, so make sure you look at some things to avoid when applying for a mortgage to make sure you get it right the first time.
There’s a lot of paperwork that goes into buying a property, and you’re going to need a lawyer to help you out. The costs of hiring attorneys to help with your purchase can be anything from $700 upwards, which can be a cost you weren’t expecting. It’s best to save some extra to cover for anything unexpected, as legal fees have a habit of mounting up.
One of the final costs you’ll need to pay before you set foot in your property is the cost of moving! Whether you hire a van or book some movers (highly recommended), it’s going to add some extra spending to your overall costs. Decluttering before you move will mean there’s less to move with, and you’ll have everything more organized ready for your new home. Ask friends and family for help so that you can cut costs, and ask around for packing boxes and materials.
Saving for your first house is a huge achievement, but it’s always worth saving a little extra after you’ve reached your initial deposit. This will help cover emergencies and give you some money left over to spend on the fun things for your first home. It’s an exciting and scary step, but one that will be worth it when you get the keys in your hand.