Last updated on April 19th, 2021
Buying a house is an exciting prospect. Whether you’re taking that monumental first step onto the property ladder or you’re thinking of selling your property and relocating, it’s wise to get your finances in order before you start searching for a new home. It’s wise to check into things like mortgage insurance, homeowners insurance, and First American Home Warranty that covers major appliances and systems such as heating and cooling. Owning a home is a big step and it pays to be prepared. Here are some top money tips to fund your next move.
Analyzing your financial situation
Buying an apartment or a house is a massive step. For most of us, investing in real estate is the most significant outlay we will make in our lifetimes. Before you start calling agents or browsing listings online, it’s crucial to analyze your financial situation so that you can assess your finances and make sure that you’re in a good place. If you already have outstanding debts, or you don’t have a significant sum saved to use as a down payment, it may be best to wait until you have cleared some of your debts and amassed more money.
Setting a budget
If you’re keen to go ahead and try and secure a property, the next step is to set a budget. Your budget should cover the purchase price plus any extras, including legal fees and renovation work. If you’re taking on a fixer-upper, you’ll need to factor in the cost of all the work that needs doing to make sure the project is affordable. Use a site like MortgageCalculator.Org to get an idea of how much you could borrow and how much you would be paying each month and make sure you’re not stretching yourself too far. Think about your current budget and how much wriggle room you have. If you’re already finding it difficult to make ends meet, or you don’t have much in the way of disposable income, set your budget at a level that will enable you to buy without increasing the risk of getting into debt. Once you have a budget, you can use filters to find properties that are within your price range. Before you apply for a mortgage, make sure you read the terms and conditions, ensure you understand the repayment schedule and interest fees and compare offers from different lenders.
Buying a house is no mean feat, especially in an age when it is increasingly difficult to save. If you’ve decided that you want to get on the ladder, or you’re keen to move to a bigger house or a more affluent area, it’s a good idea to draw up a saving schedule and try and put as much money into the pot as possible. The more you can put down, the better the mortgage offer will be. Use a budget to highlight areas where you can make cutbacks and try and transfer a lump sum every payday. Set limits on spending and cut down on non-essentials and luxury items. For more saving tips, take a look at this article https://www.thesimpledollar.com/save-money/little-steps-100-great-tips-for-saving-money-for-those-just-getting-started/.
When you look at a property brochure, or you trawl through listings online, you’ll see prices and valuations. In many cases, the price you see will be negotiable. If you’re in a position to move quickly, you’re not in a chain and the property has been on the market for a while, it’s a good idea to try and bargain with the vendor. Be realistic, but don’t be afraid to start a little lower than your maximum bid. There’s a chance that it will be accepted, and if it isn’t, you can always increase the offer. If you’re in a situation where there are other buyers interested or you’re buying in a real estate hot spot and you have the funds available, it may be best to go straight in with your best offer.
Making your money stretch further
Some people find a home they love instantly, while it can take others weeks, even months or years to find a property that crosses all of the boxes. Often, price is a factor and people fall in love with homes they cannot afford. If you’re keen to make your money stretch further, consider expanding your search area slightly and think about taking on a house that needs a little TLC. Moving the boundaries can diversify the pool of properties and enable you to get more for your money, while doing work yourself is usually a lot cheaper than buying a home in pristine condition. If you are toying with the idea of renovating a house, get some quotes first and figure out the numbers.
Are you looking to move house, or are you eager to get your foot on the property ladder? If so, hopefully, these tips will help you fund your next move.