How To Budget For Buying Your First House

Conduct your due diligence and prepare to close with the necessary professionals and closing costs on hand.

How to budget for buying your first house. The average deposit paid by buyers using MoneySuperMarket is 18 or 50174. With just a few simple questions to answer you can obtain an approximate property budget within moments and discover whether those homes youve been fawning over really are within your reach. Compare mortgage lenders and get preapproved for a loan.

Legal fees cost about 1500 to 2000. A first-time buyer usually needs a deposit between 5 and 25 of the price of the property. Buying a house is no small feat.

The average deposit paid by buyers using MoneySuperMarket is 18 or 50174. Thats nearly 1000 more than your monthly mortgage payment. Thats why weve created a really quick and easy-to-use budget calculator to give you an idea of how much you can afford to spend on your new home.

Determine your budget for a house before looking. The bigger a deposit you have saved up the more options youll have when it comes to choosing a property. For at least six months before you buy your house you might decide to write two checks when you pay your rent.

Long before you buy your house you can budget and possibly avoid payment shock when the moment of truth arrives. This means looking at listings and features for homes in your target location. You can write a check to your landlord for the rent and another check to yourself for the difference between your rent.

Determine how much house you can afford. Generally speaking owning a home pays off financially if you will live in it for at least five years. One step to consider is pre-shopping a few years ahead of your target date.