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When you’re looking to buy a house, things in your life change. Maybe you’ve been a digital nomad for a while, and now you’re looking to settle down. Or maybe you’re looking to buy your first house and move out of your parents home. Or get onto the property ladder after years of renting? Either way, it’s important for you to get your head around how this is all going to work out, before you start to get too excited about things. Because the money side of moving and buying a house can be big and stressful. And it’s for this reason that you need to understand what it takes, so you can manage your own expectations. So let’s take a look.
To start with, you need to have a rough budget in your mind. This is of what you will need to save up, but also the cost of the house that you’re hoping to buy. Keep this in mind, and then get practical with the next step.
But at the same time, you will also want to know what you are eligible to receive in the form of a mortgage too. Because it’s not always about the budget you have, but what a lender is willing to supply you with. So here, you’re going to want to look to mortgage brokers, like Altrua Financial, or speak to you bank. Try to get a sense of what you might be able to borrow, and what sort of rates you will be looking at here.
You will also want to be sure about what you can actually afford. So can you afford the deposit? What kind of mortgage will your salary actually allow you to get? Try to be as practical as you can here, and decide on a sum that is actually right for your lifestyle.
But then also, you’re going to want to think about how you’re going to save for a deposit. Because it won’t happen overnight and you may need to get a large sum together for this. The best way is to plan it out and budget for it right now. Make sure that you’re saving a set amount each month, and that you’re doing what you can to cut back in life, in order to make this your priority
But that’s not all. Because the financial side of buying a house is definitely more than just the deposit. And this can often catch a lot of people out. You will need to factor in legal fees and surveying costs and stamp duty – anything that may come into the equation here. And not only that, but you will want to make sure that you can actually afford the house that you’re buying. Because not only do you have the mortgage repayment, but there’s also insurance, bills, and your own personal costs to take into consideration too. So this is a big part of the financial side of things.