5 Tips and tricks to save money when buying a house

Most people dream of owning a home of their own, but one thing they fail to know is that they can save a lot of money in the process. Here are some tricks and tips to help you save money when buying a house, thanks to the hidden and legal costs that many people don’t take into consideration. Here are few tips from residential mortgage broker in Toronto to save money while buying house.

1. Do you really need to buy
The critical question you should ask yourself is whether you really need to buy a home. Buying a home should not be a whimsical thing that you do because a friend has done it. Buying a home is such a big deal that it can dictate how your life will end up.  It is unwise to buy if you cannot stay put. For instance, if you do not know how long you are going to be staying in that area for a long time, you should make the decision of buying a home yet. Buying a house when you shouldn’t be will cost you a lot of money in the form of transactions costs, interests (from the mortgage), real estate agency fees and legal fees, among others.

2. Start by sorting your credit rating
The commonest method of buying a property is obviously through a mortgage. Therefore, you should ensure that you maintain a good credit score. A good credit score increases your chances of being approved for a lower interest. This can translate to thousands of dollars in savings. A few months before applying for mortgage, it is advisable that you find copies of your credit report and see whether there are problems that you can sort out before applying for the mortgage.

3. Work out the true cost of the mortgage
When buying a house, many people make the mistake of assuming that the buying price of the property is all they will need to purchase the property. The truth of the matter is that there is a lot more you will need before the property becomes yours. It is therefore important that you factor in all the possible costs of buying the house to avoid inconveniences and embarrassments. The following are some costs that come with buying a property that you should take into consideration: Stamp duty, mortgage arrangement fee, legal fee, valuation fee, survey, relocation expenses and home repairs and improvements etc.

4. Go for a home you can afford
There is no point of trying to buy a home you can’t afford. Doing so can put you in a financial hole that you will never be able to get out of. There are many mortgage calculators that you can make use of in order to find out whether you can buy that home.

5. Can you afford the down payment?
It is important to find out whether you can afford the down payment which is normally 20% of the selling price.

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