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Buying a home isn’t cheap. Let’s get that out of the way first and foremost. However, the costs of buying a home, both in terms of the deposit, how much you pay on the mortgage and for other services at the point of purchase, can be reduced substantially if you know what you are doing. Here, we’re going to look at some of the best ways to cut the costs of homeownership.
Finding the wiggle room
In terms of the actual price of the property itself, there is almost always some wiggle room to be found. The asking price might be what the seller wants and, if the property is a popular one, they might just get it. However, if you’re one of the only ones making an inquiry, there is room to negotiate the price. The best way is to come equipped with knowledge, such as the selling points on similar recently sold properties in the area. If you’re able to buy in cash only or are a chain-free buyer who can move in more quickly, you can help negotiate things even further in your favour.
Get the best loan terms
A lot of the work in mortgage hunting is simply making sure that you’re able to apply for a certain standard of a mortgage. However, beyond that, you should consider the costs associated with borrowing from the different lenders. Aside from comparing interest rates, you also need to look at the fees and benefits across the board, and a mortgage broker can help you do that. A third-party advisor with knowledge of the market can help steer you in the right direction for the best possible loan.
Be ready for the mortgage
Aside from choosing the best possible loan provider, you should make sure you’re in the best position to benefit from it. This includes not only working to improve your credit score but, most importantly, having a deposit put together. Looking at online calculators, you can see how much you would have to save to get the kind of deposit you need on the home you want. The higher the deposit, the more you can cut the costs associated with your mortgage.
Work with the right people
Aside from the costs of the home itself and how much you can expect to pay for the mortgage, there are also other service fees you need to consider as well. Home inspectors, movers, and the like all play a role, but conveyancers are likely to be the most expensive. Finding the best conveyancer for your money is all about making sure you’re getting the quality of service that you need, but also at the right value. Collect quotes from more than one conveyancer and be sure to ask about any fees that might not be included in that.
Taking the step towards owning a home is a big one and one that’s going to impact you financially for years. However, getting the best possible start by cutting the costs of buying can help you make it a little more manageable at the very least.