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The Hidden Costs of Buying a Home

 
28/05/2019

It is no secret that buying a home can cost you an awful lot of money, and many first-time buyers can often only think about the deposit and solicitor fees and forget that there can, in fact, be a lot more expenses to consider. However, buying a house is such an exciting time, but can also come with a lot of stress if you haven’t budgeted accordingly or prepared yourself for any additional outgoings. We have taken a look at some potential costs that you may not have considered. 

 

Solicitor Fees

 

After saving up for a few years, you may have only saved enough for the deposit you need. However, one costly expense is solicitor fees, and this isn’t something you can tend to avoid. The legal process involved when purchasing a home includes a number of different aspects such as local searches, Land Registry documents, ensuring the money is exchanged and much more. These types of fees can range from £500 to £2000, so this is definitely something you should consider when you are looking to buy a home. 

 

Valuation Fees

 

When applying for a mortgage, your chosen lender will want to carry out a valuation on the property. They will want to know how much the property in question is worth so what they are lending you is correct. Although some lenders do not charge for this service, others do,  with it usually costing around £200. 

 

Survey 

 

Getting a survey carried out on the property you are looking to buy is definitely a good idea. This will give you an indication of what state the property is in and if there are any underlying problems. Even though this could set you back over £1000, it is worth finding out if the property has any issues. 

 

Mortgage Broker

 

Using a mortgage broker to help you find the best deal for your mortgage is not an essential part of buying a home but can save you money in the long run. Using a mortgage broker could cost you over £150, but they do take a lot of the stress away from trying to get everything in order to submit your mortgage application. 

 

Life Insurance

 

When you own a home, it is important that you have a life insurance policy in place as if you were to die, your family can rely on it to cover any debt such as your mortgage. 

 

Removals

 

Many people moving to a new house will use their friends and families to help if they are moving locally. However, you may need to use the help of a removal company to help move some of the larger items or to move everything if your friends and family don’t have a large car or van. 

 

Furniture and Household Goods

 

If you are a first-time buyer, you may be moving straight out of your parents’ home. This will mean that you may not have any belongings that you can take with you and will need to start from scratch. This will mean you may need to account for furbishing your home whilst you are saving to purchase items like a bed, kitchen goods, sofas and other items. 

 

Bills

 

After you have moved into your home, you will have to think about your first month of bills; it is worth thinking about this before you move in and make sure you have some money saved back. Bills such as water, electric, gas, council tax, buildings and contents insurance and internet/phone bills can be rather costly as well as your first mortgage payment, so it is worth working out the approximate cost of these beforehand.

 

Here at Godfrey Short & Squire, we are estate agents in Okehampton who cover West Devon. If you are looking to sell your home or are even looking to relocate to the area, then please do hesitate to get in touch on 01837 54504.

 
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