Future Proof Your Life -Things to think about before buying a house

buying a house

Becoming a homeowner is usually one of the biggest purchases that you will make in your lifetime. It can often be a stressful process but here’s some useful advice that will be helpful when looking at buying a house .

Firstly, before you even think about purchasing your own home, try to clear any outstanding debts. You are more likely to obtain a mortgage and get a better deal if you have a good credit rating.
You can work on your credit rating by reducing debts and keeping up with repayments. You want to avoid any missed payments and keep our level of outstanding debt to a minimum.

Mortgages

The world of mortgages can be a bit of a minefield as there’s a lot to consider. If you are confident enough, you can source a mortgage deal yourself, but you can always arrange a meeting with a mortgage advisor if you need help. When it comes to finalising a mortgage it’s often a prerequisite of a mortgage offer that you have insurances in place such a life insurance, income protection and critical illness cover. Requirements will vary between mortgage lenders, but life insurance is a great way to ensure that the properly is protected and the mortgage is repaid in the event of death. Future Proof can help you figure out the cover and protection you need to help you and your family financially.

 

Deposits

You generally need to try to save at least 5% of the cost of the home you would like to buy as a deposit.
For example if you are looking to purchase a property valued at £150,000, you will need to have saved at least £7,500 (5%) for the deposit. The higher the deposit that you are able to save will give you access to a wider range of mortgages available on the market and lower interest rates.
Remember the higher the deposit you can provide, the lower your loan-to-value ratio will be.
Money saving expert has a great mortgage calculator  to get a rough idea of repayments.

Estimate Purchase costs

When buying a home, you can run into a lot of fees that you might not have originally been aware of. There’s a multitude of fees that you need to consider when purchasing your home that you will need to take into account, especially if you are moving on a budget.

  • Mortgage arrangement and valuation Fees
  • Solicitor Fees
  • Surveyor Fees
  • Insurance – Building & Content
  • Stamp Duty Land Tax
  • Moving Costs
  • Furnishing Costs

budget
Budgeting – Organise your finances before buying a house

It’s a good idea to put together a monthly affordability budget before you start looking for a property and it is equally important to organise your finances before you apply for a mortgage. Think about how much you can afford to pay every month, remembering you’ll still have to cover everyday costs such utilities, travel costs and food. Look at areas where you might be overspending such as takeaways, subscription-based services and eating out to try and reduce outgoings.

 


Start an emergency fund

Having a small pot of savings can be extremely helpful, especially for things like emergency repairs that wouldn’t be covered by your home insurance. The cost of repairs can quickly mount up so having an emergency fund can lessen the dent of the repair costs.

 

1 Comment

  1. […] Moving home can be expensive, it can be helpful to budget your moving costs, to stay on top of your finances. You’ll need to budget for removal expenses, house removal insurance, cleaning costs, and storage costs. There may also be costs associated with switching your providers (energy or Internet) and redirecting your mail. Try to get organized as early as possible, this will allow you to shop around for the best deals. […]

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