Here’s the thing about a move to a new house: It’s not going to be cheap! You will be faced with a number of expenses, and for a while, your bank account won’t be as healthy as it once was. However, that doesn’t mean the move has to bankrupt you. You can make life easier for yourself by following some of the tips I will let you in on here. So, if you’re thinking about moving to a new home soon, put together a plan based on these wise financial tips for your move.
#1: Know what you can afford
While it can be tempting to take out a bigger mortgage for a more luxurious house, you do need to be careful. If you aren’t able to cover the mortgage costs and all of the other expenses incurred with the house move, you will get into financial trouble. Use an affordability calculator so you know what price range you should be considering and then stick to your budget.
#2: Save up for your mortgage down payment
To get a lower interest rate on your mortgage deal you should put down as much money as you can on the down payment. If you already have savings this will be easier for you, but if not, now is the time to start putting money into a savings account. Be sure to choose a savings account with the best rate of interest, of course, as you will then have the opportunity to watch your savings grow. When possible, raise more money to put into your account. There a number of ways you could do this, from selling items you no longer need to receiving cash for annuity payments. Then, when it comes to choosing a mortgage lender, shop around different banks and mortgage providers, and look for a deal that suits your financial situation.
#3: Check your credit rating
You might find a great mortgage deal, but unfortunately, you might not qualify for it if the lender isn’t happy with your credit score. You might have to take out another mortgage product or incur a greater amount of interest each month. For this reason, check your credit score, and if it’s between 0 – 379, do what you can to improve it. Do this as early as possible, as you should get a better mortgage deal if your credit score is over 380.
#4: Pay for a home inspection
When you think you have found a house you like, don’t be too quick signing on the dotted line of a contract. It’s always worth paying for a home inspection first, and this is for one very good reason: You don’t want to end up with a money pit! The inspection will uncover any defects within the property, and while some of them may be minor, there could be others that will later cost you a fortune to put right. So, look for property inspectors in your area and consider the expense a useful one. Ultimately, their services could save you a lot of money in the long run.
House moves are stressful enough without the financial pitfalls that can occur along the way. Follow these suggestions to make life easier for yourself and then commit to further research for more financial tips for your move.