Financially Ready: Budgeting for a New Home

new homeAs buying a home can be financially draining, you need to know what to expect to ensure a smoother buying process. By understanding all the costs associated with buying a new house, you will be a step closer to owning your dream home.

Substantial Deposit

A bigger substantial deposit is much better when saving for a home. It is advisable to save 20 per cent of the purchase price. The more money you put down on the home upfront, the smaller your monthly payments will be. This will help you with your monthly budget and allow you to save thousands on interest rates over the life of the home loan.

Regular Savings

A history of regular saving in your bank account will make it easier to get a home loan. Get an idea of price of house and land packages that you want to buy through the Internet. The real estate market is fluctuating so it is best to know how much money you need to spend on a house you like. Determine how much you can afford to spend on deposit and mortgage payments. Think of buying a low cost house if the repayments will be easier.

Home Loan Pre-approval

Before deciding on a loan, compare different packages first. Ask for a key fact sheet on each loan so you can compare the terms easily. This will give you the information you need, including the total amount you need to pay over the life of the loan, repayment fees, and other charges. A fact sheet will offer you a comparison rate as well, helping you know amount of loans compared to others.

Additional Savings

Extra savings are important to help you carry on if interest rates and repayments increase. Additional savings are beneficial to cover extra costs such loan set-up fees, duty, stamp, property inspection, and others.

If you have a good financial situation with steady income and stable job, you may be ready to purchase your own home. Work with a reliable lender and choose the best house and land package that suits your preference and budget.

Posted on by Tsfp6 in Reviews

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