How much will you need to buy your first home? – Saving to buy your first property can be daunting – but having a clear and realistic plan can make it feel much more achievable. The first step is work out how much you need to save. Your deposit is by far the biggest thing you’ll be saving towards. It will usually need to cover at least 5% of the cost of the property, with a bank or building society lending you a mortgage to cover the rest.
Generally, the less you earn, the smaller the mortgage you’ll be offered – meaning you may need a bigger deposit than 5% to buy the property you want. If you buy with someone else, you’ll be able to apply for a larger mortgage, and potentially build up a bigger deposit.
Buying your first home is probably of the most exciting adventures of your life. Going into the process armed with the knowledge you need can help make the process smooth and straightforward. Once again, How much will you need to buy your first home?
Some of the tips you may need to know are as below:
Don’t Get sucked in by Budgets You Can’t Afford
It can be very tempting to go for the house that’s a bit outside of your budget because you’ve fallen in love with it, but you really need to sit down and take a good look at your finances. In addition to your monthly mortgage, you have to pay for maintenance, insurance, taxes and all of the other costs that go into home ownership. Don’t put yourself into a situation where you’re struggling to handle those costs.
Check Out the Neighborhood’s Building Plans Before Moving In
You’ve all heard those housing horror stories. People moved into beautiful homes because they had incredible views. Shortly after moving in, those views were soon obstructed by new construction. Not only were the homeowners now dealing with the loss of those gorgeous views, but they’re also possibly facing a marked decrease in home values. Before you move in, find out from the local council or the homeowners association if there any plans for new buildings or developments in your chosen area.
Watch the video below as Abigael, a young lady at 27 tells how she saved a £40,000 mortgage deposit.