Buying a new home is an exciting time but it can also be stressful and expensive. Knowing the best ways to finance your home can make the process a lot less straining. There are many options for buying property and it’s important to make the right decision for you.
When you’re well informed, you can make decisions that are not just good for you now but good for the future too. Take a look at what your options are.
Your Deposit
The more money you have to put down as a deposit on your property, the better. However, it’s not always easy to save for a home deposit when you’re already paying rent to someone else. There are many people in the position that find it difficult to buy a home at all.
One of the best ways to do this is to borrow money from family and friends. You can pay them back as soon as you’re able without having to worry about paying additional interest. The more money you can get, the better deals you’ll be offered when it comes to your mortgage.
Housing Schemes
It’s worth looking out for housing schemes in the location you’re interested in moving to. Some housing companies will offer people discounts on purchasing houses to make sure all the homes are sold. For instance, you may only need a 5% deposit to purchase a home.
However, it’s important to always read the small print when it comes to schemes like this. You may find that the housing company is asking for 20% but only wants an initial down payment of 5%. In five years, you may find yourself having to pay the extra 15% in one lump sum.
Build Your Own Home
Building your own home is another option. Financing options are different to purchasing an already built home. You’ll require home loans to purchase the land for your home before you start building. Building on your own land can be costly but it means you get to design your home exactly as you want it.
How you finance the building of your home will depend on its design, how much money you have to put towards it, and how long you intend to pay your mortgage.
Pay Outright
Perhaps you’re lucky enough to be a cash buyer. If you’re able to pay for your new home outright, it puts you in a very favorable position. Cash buyers are often afforded discounts that other buyers aren’t.
Cash sales are often processed more quickly than other sales which means the property can be sold more quickly to a cash buyer. If this is appealing to a seller, you may find that you’re offered a lower price so the property is quickly taken off their hands.
It’s worth talking to a financial advisor before looking at buying property so you can get advice on the best finance options for you. A financial advisor may have connections to lenders that you’re unable to reach.
Take a look at our other articles for great advice.