Introduction: How to Save Money When Buying a House

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A house is quite simply the biggest purchase of your life and you don’t want it to cost any more than it has to. But the process can be quite a complicated one and it is often difficult to know when and where to save money. This guide can help you save on the costs and ensure you find the best possible deal

Step 1: Understand the Costs

One of the main reasons why people find buying a home so expensive is because they aren’t aware of all the costs associated to buying a house in the first place. Some of the essential costs come as a surprise and if you haven’t budgeted properly, you will end up spending a lot more than you initially thought.

Make sure you carefully calculate all the costs and draw up a budget based on that. Don’t just think how much you want to spend on the house and the mortgage, but calculate a realistic budget for the whole process.

The costs you need to keep in mind include:

  • Mortgage arrangement fees
  • Stamp duty
  • Legal fees
  • Valuation and survey costs
  • Removal costs
  • Possible new furniture
  • Possible renovation projects

Step 2: Calculate the Mortgage

You should also use the various mortgage calculators to find the best deal for you. In some instances, you might be offered more than you need and you should never just take as much as you can get without carefully thinking if you can keep up with the payments.

Get a mortgage you know you can pay in your current situation. It might be tempting to take the highest offer, but it might not be the most beneficial to you in the long term.

Step 3: Compare Estate Agents

Don’t just walk into the first letting agency you see and get them to look for a flat. There are huge differences in prices and you don’t want to end up paying for hidden fees.

Look for properties online and check reviews of local estate agents. The Internet offers you much more choice these days and you should take full advantage of it in order to save money.

Step 4: Check for the Hidden Problems

You can save yourself from conducting too many evaluations and surveys by understanding the hidden house problems. Realising the problems before you pay for surveys and valuations can save you from wasting your time, as well as paying money for bad properties.

When viewing the house, check for obvious signs of damp and moisture, especially in areas like the kitchen and the bathroom. Make sure you see whether the owner has tried to paint on top of these moisture patches.

Furthermore, look inside closets and cabinets and try the taps to see what the water pressure is like. Switch on the lights and ask about any electricity and plumbing problems.

Don’t just inspect the interior of the house. Major roofing problems might end up costing you a lot of money, so make sure you have a peek. You should also pay attention to the condition of the walls and the guttering to ensure you won’t be repairing the exterior any time soon.

Step 5: Check Out Affordable Schemes

Finally, if you are a first time buyer then there are plenty of helpful schemes available for you to make buying a home more budget-friendly. These schemes can help you negotiate better mortgage conditions and make buying a home more affordable. You can find more information from the Money Advice Service website.