There are lots of things that you need to consider when buying a house. One of the most important of these is the finances. In this blog post we help you with how to prepare your finances for buying a house in Peterborough. This will help ensure that the house buying process runs that little bit more smoothly.
- What Can You Afford
The first thing you need to look at is what you can afford. There is no point looking at houses on line or in person and not knowing what you can afford. It’s a good idea to speak to a mortgage advisor and get a rough estimate of how much you could borrow for a mortgage. We have an independent mortgage advisor that we can connect you with for this chat. You’ll also be able to find out how much you need as a deposit too. Some lenders will only require 5% deposit, but more doors will be open to you, the higher your deposit. The higher your deposit the better chance you’ll have of getting a better deal on your mortgage.
- Build Up A Deposit And Savings
Put together a savings plan if you want to have a higher deposit for your new home. Look at what you are spending and where you are spending. Are there ways that you can cut back and save more? If you’re looking to cut back on utilities, we can look into this for you. A cheaper provider could get you the same level of service but save you hundreds over the year – it’s definitely worth the conversation.
It is a good idea to save as much as you can towards a larger deposit for your home. This will help you get a lower interest rate, and it will open more mortgage providers to you. It will also mean a reduction in your monthly repayments too.
In addition, you need to start saving towards the costs of buying a new home. These include things like removals, legal fees, stamp duty, survey costs and more. There are a lot of extra costs involved in buying a home that you may not have considered. Drop us a line for a break-down of how much you can expect to pay for moving home.
You will also need savings to pay for things in your new home. Maybe you need or want new furniture, curtains or light fittings. Even things like getting the locks changed, new lightbulbs and toilet brushes can add up. Having a pot of savings that you can dip into will relieve a lot of stress when you’re moving house.
- Check Your Credit Score
When you borrow money to buy a home, lenders will look at your credit score. This will help them decide if they should lend you the requested money or not. Your credit report will show them how reliable you are at borrowing and repaying money.
Take the time to look at your credit report. Are there any improvements you can make? There may be outstanding fines you have paid but haven’t been cleared. In which case, contact the company to get it cleared. This will help your credit report look more attractive to possible lenders.
Need help finding a house within your budget in Peterborough? Call our team of estate agents now. We will be only too happy to help you.
