HOW TO SAVE MONEY AS A FIRST TIME BUYER
Buying your first home is one of the most exciting journeys you’ll ever embark on. However, it is also one of the most costly purchases you’ll ever make. Likewise, your lack of experience in this field opens the door to potential problems.
However, it is possible to save money as a first-time buyer at various stages of the journey. Use the following tips to ensure that your dream doesn’t turn into a nightmare.
Find The Right Property
First and foremost, you need to find a property that you will be happy to call home for several years to come. After all, the process of moving home costs a lot of money once you take legal fees and stamp duty into account. So, it is vital that you select a suitable property.
To do this, you must consider several factors. The location of the property is as vital as the home itself. You also need to know that the size will satisfy your needs. This includes factoring in a child’s bedroom if you are planning to start a family in the near future.
The choice between new builds, auction properties, and fixer-uppers will be important too.
Get The Best Deal
After finding the right property, it is essential that you get the best deal on it. Negotiating the sale price could instantly save you thousands. Moreover, a smaller capital balance reduces overall interest. With this in mind, trying to save for a larger deposit is highly advised.
Preparations like building a better credit score are sure to help. Crucially, you must research the various types of mortgages that may be available. Selecting the right product can save you a fortune over the term of your mortgage, especially if it’s a 20 or 30-year deal.
Going forward, making an additional payment each year can work wonders.
Reduce Moving Costs
The harsh reality is that the process of moving will cost you thousands. As a first-time buyer, your stamp duty fees will be smaller than if you were purchasing a second home. Still, you will face taxes, legal fees, and a host of ‘hidden costs’.
Researching them in advance saves you from any nasty surprises. You should also search around for the cheapest moving company and affordable solicitors. Selecting the right survey is vital too. There’s no point paying for an expensive one on new builds.
The savings made could pay for your first month or two of mortgage repayments.
Keep The Home In Good Condition
Buying a home is expensive, but so is running one. Energy costs have skyrocketed in recent years. Therefore, upgrading the windows or roof insulation could be the perfect starting point. The projects will pay for themselves in the long run.
It is also important to prevent costly repairs to the home. When coupled with basic maintenance skills and DIY jobs, you stand to save thousands. Perhaps more importantly, it is the perfect way to keep the home in good health while also feeling comfortable.
It will go a long way to making your vision of homeownership a reality.
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