There’s no denying that, however you go about it, there’s no good way to make buying a house “cheap.” If there is a house that comes cheap, you can be sure that there’s a good reason that this is the case, such as a large list of repairs you’re going to have to tackle before you move in. However, that doesn’t mean that you can’t control the costs of buying a new home. Here, we’re going to look at a few ways to at least make it a little more affordable for you and your family to move in.
Making Your New House A Little More Affordable
Budgeting for all of your expenses
It is critical that you take the time to figure out how much the home buying process is likely to cost you before you even start looking at properties. Aside from the cost of the mortgage needed to buy the mortgage itself, you should also look at any closing fees, taxes, as well as services you might have to render such as paying for the estate agent you use to find the house, and the conveyancing solicitor you use to carry out the legal side of the property transfer. When you decide your house-buying budget, make sure that it also accounts for these extra costs. Otherwise, you might have to rely on things like credit to pay some of them off, which only makes the process more expensive when you have to repay the interest.
Get in control of your credit
Much of the initial cost of buying the home is going to come in the form of the deposit that you have to pay for the loan, then followed by the terms of the loan itself. As such, you want to make sure that you’re in the best position to get the loan that suits your needs. To that end, you should take steps to address your credit score and improve it as best as possible so that banks are more likely to offer you their best mortgages. One of the quickest ways to do this, aside from keeping current with any bills and paying off debts, is to take a look at your credit report and see if there are any erroneous records you can set straight.
Choosing the best possible mortgage
Having great credit and otherwise being the best possible loan applicant is going to help you get access to a much wider range of loans than you might have, otherwise. However, it doesn’t guarantee you’re going to get the best deal. To that end, you need to make sure you’re choosing the right mortgage. Though, for people who have never bought a home before, it can be a very difficult market to navigate. As such, you might want to consider working with a mortgage broker, whose job it is to represent your interests and find the best possible loans for you.
Look at other schemes of ownership
You don’t necessarily have to buy a home outright, taking on the entire brunt of the mortgage. There are different schemes that can help make it more affordable for those that might have trouble with that initial hurdle of the deposit that you have to put down. A let to buy mortgage lets you rent out an existing property to help you pay for the one that you’re moving into next, for instance. A co-ownership model sees you paying the bank slightly more in monthly payments in exchange for them waving the initial deposit. Make sure you look at the different schemes available to you, each of them with their own specific benefits that work for people in different positions.
Consider a little negotiation
Don’t be scared off by the initial asking price tied to a home that you’re looking at. While the homeowner and their agent might indeed be aiming for asking price, they’re only likely to get it if there is a lot of interest in the property. If there is, you might not have as many options in negotiation. However, if the market is a little slower, then you should be willing to haggle the price with them. Discuss negotiation strategies with your own agent and make sure that you don’t come in with an offer so low that it’s insulting to them. Use things like past house sale prices in the area to work towards a more advantageous price.
Should you wait to buy a home?
In some cases, you simply might not have the option to wait too long in order to buy a home. If you need to get moving as soon as possible, then you have to work with the market that you have. However, when it comes to home sales, there are some parts of the year where the advantage is thoroughly in the buyer’s court. Winter, in particular, is a good time to buy a home, since there are fewer people who are willing to trek around looking at properties at this time of year. Conversely, spring and summer can be a tough time to get a good deal since the market is a lot more active.
Don’t show your hand
When it comes to negotiation and making offers, you have to remember that it’s a game of leverage. You can, for instance, leverage a slow market and lower market prices in the area to convince the seller to meet you on your level. However, the seller can convince you to meet them on theirs, as well. This is especially true if you make it abundantly clear that you’re in love with the property and want to buy it. If you tip your hand, then the seller will play with those cards in mind. Similarly, it’s important to control your emotions and take the time you need to think and compose yourself so that you don’t make any deals that are not in your favour.
There are plenty of options when it comes to reducing the overall cost of the house, as well as the moving process. Hopefully, the tips help you save some real money.