Buying your first home will come with many costs that people usually forget to factor in. Your deposit will be the biggest cost towards your first home, with you having to save anywhere between 5% and 20% of the property’s value. However, there are other costs such as conveyancing and surveying fees you should budget into the final cost.
This article will help you to prepare for the costs of buying your first home, from budgeting to affording conveyancing and surveying fees, to how to avoid added costs with your removal company.
Hiring a licensed conveyancer is one of the main costs to consider when buying your first home. Once your offer has been accepted on the house, you will need to begin the conveyancing process.
You should expect to pay the conveyancer’s legal fee at the beginning of the process, which is usually what is shown in the upfront quote. Usually hidden, conveyancing disbursements will have to be paid to your conveyancer so they can order conveyancing searches and other third-party services on your behalf.
To prepare for your conveyancing costs and avoid any surprise bills later down the line, make sure you get a breakdown of your quote, including both legal fees and conveyancing disbursements.
You’ll also need to factor in the cost of a property survey when you’re buying your first home. A property survey will save you from spending hundreds or even thousands of pounds to fix issues once you’ve moved in, as you will know about any hidden damage before you have to legally purchase the house.
The cheapest property survey will be a homebuyer report, but if the house you’re buying is an old property that was built using unusual materials, then you will require a building survey. Don’t have a survey on the property until your offer has been accepted, as you’ll risk wasting the surveying fee if you opt to have the survey before your offer has been accepted.
Remember to factor in the cost of your removal company as part of your budget for buying a house. Add in the cost of packing and other removal services to the total price of your removal company, if required.
Make sure there is room outside your house so the removal company can have easy access to load their van, as some companies can charge you extra if this makes their job difficult.
Even after paying your deposit for the house, you will still need to pay your mortgage each month. The amount you pay each month will depend on how much of a deposit you pay. The bigger the deposit, the less monthly mortgage payments you will pay.
You should work out how much you can afford to borrow and pay back based on your monthly wages and budget this into the cost of your first home. Use a mortgage calculator to work out how much you can afford.
By preparing for every cost of your first home, you can know exactly what to expect by making sure you budget for everything.