Have you ever dreamed of having your own house? It is for sure that you have planned for a long period of time. For some people, instead of buying alone a lot, there are people who will really like to prefer a house and lot. Before you ever search for your dream house and lot, the question is do you have the right cash to finance this purchase?
Talking about finances
It is really just normal for a person to think of your future especially if you are building a family of your own. Don’t worry because there are many ways on how you can purchase that house. To help you more, here are the things that you can take into account in purchasing for your new home:
- Choosing the type and location of house to purchase- It is the most important thing that you need to think of. Aside from its cost, you should also consider things like the convenience in transportation, school and other establishments that is helpful to you. It might help if this house has a rental potential.
- Mortgage – Everyone will probably know that this is the type of loan used to purchase a home. There are different types of it having its own fees, degree of flexibility and interest rate. These things will greatly tell how much it will take you to pay that loan. There are many banks and mortgage brokers around there that you can ask about this.
- Deposit – It is really important that you have a savings deposit. It is because there are lenders that require a borrower to have at least 20 % of the amount that you would like to loan. If you have a bigger deposit, then you have bigger chances of paying lesser interest in the given period. There were some types that have 80% of the total value just to cover the lender’s risk. And to cover this risk, there are some who would increase the charge for the mortgage insurance or the interest rate. Be wise enough to choose the right loan that will match with your deposit.
- On-going cost – Aside from the things that you will need to repay, you will need to take into account the ongoing cost such as rates, insurance and others. If by any chances, you will be purchasing a property that has a unit title then you will pay its body corporate fees. These fees include maintenance and insurance of the shared place.
- Moving-in cost- Aside from the costs that you will have in purchasing for your new home, there are still other moving-in cost. These may include the moving service like truck hire, decorations or renovations for that home and connections fees for internet, power and phone. Legal expenses may also be part of these expenses.
Proper budgeting of your money is the right thing to start with. It will be unreasonable if you will be purchasing a house that you cannot pay its mortgage. You can do some research for the type of house and the loan that you will get. This will all help in budgeting for your first home purchase.