How to Save Money When Buying a House

If you’re a first time buyer, a property will usually be the most significant purchase you have ever made. Those looking to buy homes should be aware of all the costs involved and make detailed budgeting plans to avoid unforeseen financial pitfalls. There are ways that you can save money when buying a new home, and below are listed a few of the basics.

Get Clued Up on the Costs

Buying a house isn’t just about the deposit and the mortgage payments. You should also be prepared to pay your lender an arrangement fee of typically £1,000. Your lender may also expect you to pay a valuation fee that covers checking the property exists and offers sufficient security for the loan in question. If the property is more than £125,000, you will have to pay a percentage of the price in Stamp Duty. Many buyers will pay to have surveys done on properties that they are interested in, even if the sale falls through. Surveys usually cost between £400 and £700 and it’s important to budget for two or three.

Choose an Online Estate Agent

You can save money when buying a house by choosing an online estate agent. Many agents including the House Network will provide you with a one-stop service that cuts out many fees charged by traditional estate agents. If you’re going to go with an online estate agent, make sure you ask all the relevant questions about the kind of sales they can offer you and compare a number of quotes before you make your decision.Closing Steps, How Closing Costs Affect You

Moving Day and Home Repairs

Look for the cheapest and most reliable moving company, or enlist the help of friends and neighbours to move heavy items of furniture and rent a van independently. It’s best to go with a removal firm that comes with plenty of good recommendations. Many first time buyers find that when they arrive at their new home, there are plenty of DIY tasks that need to be completed. If you’re on a tight budget and haven’t got the cash to spend on an extensive remodel, look online for DIY tutorials and attempt all minor fixing-up tasks yourself. Remember that you only need to call in a tradesman when it’s absolutely necessary, for example with electrical and plumbing work.

Save on Conveyancing Costs

Don’t automatically use the conveyancing firm that is attached to your estate agents, but use the price they charge as a benchmark. It’s important to shop around for quotes and use price comparison tools online to determine which conveyancing service is most suitable. The firm doesn’t need to be in your local area, but it does have to be accredited by a regulatory body.

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