Buying a home is an exciting yet nerve-wracking process for most people, particularly because there are so many moving parts and so many things to think about.
It’s also an expensive process, which is why it might be a good idea to keep an eye on your outgoings during and after the sale.
Your budget will obviously influence the properties you can and can’t afford, but it’s vital that you also budget for other expenses besides the actual cost of the property.
For instance, you’ll need to budget for conveyancing fees and possibly other legal expenses, you’ll need to make sure you have enough left in your budget to cover the move itself, and it would also be a wise idea to have a little extra set aside for unforeseen expenses, because some are sure to arise.
The impact of location
Finding the right location for your property purchase can be surprisingly tricky, because you’ll usually have to weigh up conflicting locational factors. For instance, a property near a train station or close to good schools can save you money on travel costs, but the cost of the property may well be higher since those property’s are likely to be in higher demand.
A property in a small village or town might be cheaper to buy, but you could end spending more getting to work or transporting the kids to school.
The term of your mortgage
The shorter the term of your mortgage the less interest you’re likely to pay, so you may be tempted to opt for a 10 year or a 15 year mortgage to reduce the total amount.
However, if you do opt for a shorter mortgage it’s vital that you double check the monthly repayment amounts to ensure you’re still able to afford them. It’s also important to calculate what the monthly mortgage payment would rise to if interest rates were to rise sharply, and do some sums to make sure you’d be able to afford that amount each month too.
Your energy suppliers
When you buy a new home you may well ‘inherit’ the previous owners’ energy suppliers, but there’s a good chance there will be much better tariffs available if you shop around. Make it a priority to get energy quotes from an energy comparison site like quotezone.co.uk, which will allow you to cut costs by switching to a cheaper tariff.