Buying your first home can be a tricky and often depressing thing. There are some basics steps you can take, but those steps are ultimately baby ones that bring you ever so slightly closer to your goals. That’s why buying a home can be so daunting; because the progress you make is so minuscule that you’ll question if you’re actually making any progress at all.
Step 1: Budgeting for a deposit
Buying a home requires a good understanding of money. This means you should understand how to budget your expenses and how to save enough money for a deposit. You need to put aside a fairly large chunk of your salary in order to pay for a deposit in any decent amount of time, and you need to build up an even larger deposit if you want more choice in homes. Learning to budget can be quite difficult if you’re not good with money, but this is the first step that most people take.
Step 2: Additional costs
If you think you can afford a home because you’ve calculated your mortgage and your salary, then think again. There are many additional costs to pay for a home, so don’t let those approximated prices fool you. You’ll need to think about arrangement fees, mortgage fees, and even legal fees. Don’t forget that you also need to pay for any kind of repairs or maintenance in the future, further increasing the theoretical cost of your home.
Step 3: Scanning for mortgages
In order to pay for an expensive home, you need to have good credit. The better your rating, the higher the chances of you getting a low-interest rate and flexible conditions. A conventional home loan is the most common type of loan for homeowners, but there are other payment schemes as well to help you afford a home. For the sake of this article, however, we’ll touch only on mortgages because it’s the standard way of purchasing a home. Make sure you ask banks and private lenders for quotes and pick only the best deal you can find.
Step 4: Family considerations
Of course, you probably need to consider your family as well. Whether you’re trying to say goodbye to parents and family members that have become dependent on you or moving into a new house to start a family with your partner, you need to think about what you need to run a family. Do you need several more rooms? Then you’ll need to spend money on a bigger house that you won’t fully utilise until the future.
Step 5: Furnishing the home
And lastly, furnishing the home costs money and time too. Don’t neglect the importance of adding good-looking and comfortable furnishing to your home. You need to ensure that you’re not skimping because your comfort is important. No one wants to move into a new home, only to have zero money left and not have basics such as a bed or television. Make sure you consider the costs of furniture and appliances when you pick a home!