Buying a house is one of the most important decisions in life. There are many aspects to consider before buying a house. Find out how to save money when buying a house with these simple steps
The first step is to decide on the type of home you want. You need to know how much you can afford and what your needs are. For example, do you need an apartment or a single-family home? Do you want to live in the city or in the suburbs? Once you have decided on these factors, it’s time to find your dream home!
How to Save Money When Buying a House : Set Your Budget
Setting your budget is the first step of the process. This is because it will decide what you can afford to spend on your project. There is no point looking at homes that you will struggle to pay the mortgage on. Take into account your emergency fund, what would happen if you lose your job and how the mortgage would get paid if you increase the size of your family.
The best way to work out your budget is to check out a mortgage finance site to calculate your payments and discover what your likely monthly bills will be. Knowing your budget can also help you know how much deposit you will need to save up.
Research Available Houses in your area
There are many different house search engines available on the internet. The most popular one in the UK is Rightmove. It has a database of just about all the available homes in your area and provides in-depth information about each home, such as the number of bedrooms and bathrooms, square footage, lot size, and floorplans.
Getting your mortgage in principle
Before you can get your mortgage you will need to get a mortgage in principle. This is essentially a pre-approval from the bank or building society that they will lend you the mortgage amount required. If you are worried about how much the bank might lend you why not find out your mortgage affordability before applying.
To get a mortgage in principle, you need to fill out an application form and provide documents that show your income, assets, and credit history. You also need to provide any other information that might be requested by the lender. This is where a mortgage advisor can come in very handy and actually save you money in the long run. A mortgage advisor will know the exact mortgage provider that would most likely accept your mortgage in principle. They can ensure your credit score doesn’t get destroyed while searching for a suitable lender.
Negotiate the Price of the Home with the Seller
The best way to save money when buying a house is to negotiate the price with the seller. I would even go as far as saying this is a very common thing to do and most house sales consist of at least some kind of negotiation. However the seller doesn’t have to accept your lower offer and this can result in losing the property to someone else so choose your bid wisely.
On the other hand sometimes starting a bidding war can even increase the price of the house that you want. So always consider how much you love the house and whether you can afford the full asking price without crippling your finances.
Consider Help to Buy
Help to Buy isn’t for everyone but it can really help if you struggle to get a decent sized mortgage for the size house you need. Look out for homes available using the help to buy to scheme. There are several different types of help to buy available so its always worth a look.