A lot of people think that buying a property is one of the most expensive costs they will face. In fact, it can put them off going through the home buying process. But while it is a costly process, there are some ways you can make it cheaper. That way, you won’t end up completely broke when you buy the property. Therefore, here is how you can cut costs when buying a property.
Put down as least deposit as possible
It’s often the deposit which can leave people short when buying a home. After all, you have to scrape as much funds as you can together. That way, you will require a smaller mortgage. However, if you don’t want to use all your savings, you might still be able to get a mortgage. Talk to the lender about the maximum you can borrow to see if you can put less down for the mortgage. Of course, it means you will have a higher monthly payment. But it could mean you save some of your funds which can then be put towards other things. Another option would be to go down the shared ownership route. You can then put a low deposit such as 5%, and the government will sub you the rest. And then you can just pay them back over time to ensure you own all your property. It could save you a tonne of money if you want to hold some funds back.
Compare mortgage providers and solicitors
It’s easy to just go with the first provider you find when it comes to getting your mortgage. After all, they might be the most well-known, so you feel comfortable using them for the mortgage. But just because they are popular, it doesn’t mean they will offer you the best deal. In fact, there might be much better rates out there which will not only require less deposit but will boast a cheaper interest rate. Therefore, make sure you compare online banks and other providers to save you some funds. You also need to compare when it comes to finding a solicitor. After all, it can be tempting to just go with the one that your estate agent recommends. But if you compare conveyancing fees, you could end up saving yourself hundreds of pounds. Therefore, make sure you shop around before going with a solicitor.
Choose a house with little work
You might be tempted to go for a project home. After all, you can then make it your own and hopefully raise the value of the property at the same time. But a lot of people forget the costs of renovating a house from top to bottom. In fact, it might end up costing you thousands of pounds you just don’t have. Therefore, if you want to cut some costs when buying a property, it’s time to look for a house with little work. For example, a brand-new house will ensure you can just move straight in without having to pay out a fortune! And then you can keep some of your savings away for a rainy day.
And remember to always offer less than the asking price. That way, you can save some funds back which can go towards renovating your house.