Your First Home: The Finances Involved In Buying

Buying property is the kind of thing that people only do once or twice in their whole lifetime, and that is part of the reason that it can be such a nerve wracking thing for you to do. Buying your first home specifically is a scary life goal.

Another reason is that it is probably the single largest expense you will ever make, and for that reason, you want to make sure that you get it right. Understanding the financial side of buying property is something that any of us could do with learning more about, and that’s why in this article we are going to look at some of the essential tips you will want to consider when buying your first home.

happy couple holding and showing a house key

Use An Agent

Whenever you are buying property, it is always a very good idea to make sure that you use an estate agent. Agents are generally going to be able to help you make the right decisions along the way. That means that you won’t be overspending, and that you will get what you want for the money you spend. Most of all, an estate agency can help you to appreciate what the housing market is currently looking like, especially in the local area you are considering buying in, and that is hugely important if you hope to get the most for your money.


Find A Good Mortgage

Nobody wants to have a huge home loan hanging over them for the rest of their lives. But the truth is that the majority of people will have a good period of twenty five years or so in which they have to pay off their mortgage, and anything you can do to make this whole process a little less painful is likely to be worth your while. In particular, you should think about finding a mortgage with a good interest rate, and which provides you with the kind of financial help you need. As long as you do that, you will ultimately find yourself moving in the right direction.

One of my biggest financial goals is to pay off my mortgage early, follow my journey and pay off your early too!

Row of houses

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Property Removal Costs

For large moves you should expect to pay between £300 and £900 depending on the size of your property and the amount you’re moving. These prices are often calculated on the volume of items that you wish to have moved and the distance of the move. To save on the cost of moving, you should aim to compare three different removal companies prices and try to negotiate a discount. You’re more likely to get a discount by booking well in advance and being flexible on the date you move. It is advisable to avoid Fridays and Bank Holidays if you want to keep the cost of removals to the minimum.


Insurance

Buildings insurance – covers everything that is a fixed part of the house — essentially the bricks and mortar. It includes the walls, roof, doors, floors, windows, pipes, kitchen cupboards and the bathroom suites. Buildings insurance is not a legal requirement, but almost all mortgage lenders will insist you take out a policy.

Life insurance – Not everyone needs life insurance (also known as life cover). But if your children, partner or other relatives depend on your income to cover the mortgage – you should consider life insurance, since it will help provide for your family if you can’t.


Timing

When buying anything big like a property, you need to make sure that you are timing it well. To do this imply look at what the market is doing. Or consider asking someone who is more in the know – and see if it is currently a buyer’s market or a seller’s market, or somewhere in between. If you are not entirely clued up on this, it’s good to have some help. In any case, it will help you to make sure that you are getting the most for your money, and that’s always something that any of us can get behind.


MORE Tips on Buying Your First Home

Steps To Buying Your First Home

Cheap And Cheerful Home Improvements

Budget Flooring Options For Your Home Renovation

16 Ways To Save Money When Moving House

Managing the Cost of Rent as a Tenant in the UK


By focusing on these areas in particular, you should find that buying property is going to be a much easier financial move for you. Of course when you’ve got the keys and you’re all moved in that’s where the next big financial journey comes!


Bonus tip

If you don’t have a will before you buy your first house, then it’s a good idea to make one as soon as you exchange contracts with the seller.  If you’re moving into your second or subsequent home then you may want to review your existing will.

Although you can get “DIY will kits”, there’s a lot to be said for getting your will drawn up by a professional solicitor.  As a minimum, this will ensure that it is fully legal (and hence valid).  It can also make the process of probate (winding up your estate) a lot easier.

When you move home, you should also review your insurance cover. In particular, if you have life insurance to cover the cost of your mortgage, check that it is sufficient to cover the mortgage on your new home.  Also, remember that it’s advisable to get buildings insurance on your new property from the point of exchange rather than waiting until completion.