Moving into a new home is always exciting, even when renting. However, nothing quite beats picking up the keys to your own property. It’s a hugely significant moment that signals the start of an immensely thrilling new chapter.
For all those positive feelings, it can be one of the scariest prospects that anyone ever faces. This is the biggest investment you will ever make and the desire to find your dream home can become overwhelming. Naturally, the financial side is one of the main pitfalls.
Here are some tips to ensure your dreams don’t turn into a nightmare as a result of bad financial situations.
Make A Substantial Deposit
For most people, buying outright in cash simply isn’t an option. However, that shouldn’t stop you from placing down the biggest deposit physically possible.
You don’t want to leave yourself penniless by any means but a bigger deposit will bring benefits in both the short and long-term future. It will get you a much better rate and alternatively opens up the door for buying more valuable property. Additionally, it’s a way of proving to yourself that you do have the ability to save money when needed.
It is now possible to get a mortgage with minimal money behind you, but it’s often not the best solution. Waiting can be frustrating, but renting isn’t necessarily bad and could be a short-term sacrifice for permanent gains.
Besides, there might be an even better property available in 12 months’ time.
Research Your Options
The modern world boasts more mortgage lenders than ever before. This can make it a scary midfield to navigate. With the right amount of research, though, you can grab yourself a much better deal than simply taking the first quote that comes your way.
Internet resources like comparison websites offer a great starting platform for any potential homeowner, but it is also worth carrying out some hands-on research too. By utilising the two methods, you’re bound to strike the best deal for you.
It could save you hundreds, or even thousands, in the long run. Moreover, the self-satisfaction of getting the best deal will take the sting out of such large investment.
Avoid Extra Fees Where Possible
The mortgage lending game can be a confusing place and one of the main reasons is the hidden charges. It would be much easier if it was just a case of the borrowed amount plus an interest rate. Guess what, nothing in life is ever that simple.
In addition to the obvious fees, you will come across a whole host of other bills like legal fees and arrangement fees. The latter can be added to the cost of your mortgage but be warned that this will incur an interest rate. Paying these sums upfront will save you money in the long run.
Be prepared to face a lot of one-off fees along the way. Don’t let it drain your enthusiasm, though. Just think, nobody can ever take the satisfaction of owning your own home away from you.