Buying your first house: here’s what to consider
Buying your first home. Maybe you are fed up with being at home all the time, living in a rented house and would like to buy or you want to move in together? But what should you take into account in terms of a mortgage??
Buying your first home
Are you planning to buy a house this year or do you already have your dream house in mind?? Because mortgage rates are attractively low, buying a house is hot. Housing prices are still rising at record rates despite the pandemic outbreak. This has to do with the scarcity on the housing market.
The question is not only whether your financial situation allows it, but also whether luck is on your side. Fortunately, you can find out how much mortgage you can get and what the additional costs will be. Then you have a good idea of what is possible.
What is the maximum amount you can borrow?
To match your expectations to your maximum borrowing capacity, it is wise to have your maximum mortgage calculated. You can make an appointment with a mortgage consultant in your area, but there are also handy online tools these days that allow you to receive an accurate calculation within just a few clicks. This not only gives you a good indication of the maximum loan amount, but also of what your gross expenses will be.
In addition, there are other costs to consider.
What it costs to buy a house?
Buying a house costs more than the purchase price alone. There are a few additional item costs to consider, if you’re looking to buy a house. But what are they??
You have found your dream home and the asking price is within your budget. That is top of course! But don’t count yourself rich just yet.
In fact, keep in mind that you have about 6% additional costs.
Consider the cost of purchase
In total there are eight things that fall under the heading of ‘purchase costs. Some are fixed, some are variable. Whether you incur all these costs is partly up to you. Think about the costs of a financial advisor, who you may have to hire to apply for the mortgage for your new home. You are obliged to hire a notary when a house is delivered.
This is quite an expense. Being a notary is a free profession. They are allowed to set their own fees.
Look carefully on a comparison site to see which notary in your area has the highest price/service rating, and if necessary request several quotes. That could end up saving you tens to perhaps several hundred dollars.
Other expenses
Other (optional) costs could be: an appraisal report, using an estate agent, the technical inspection, transfer tax, etc. It’s quite a list of costs, which unfortunately you cannot include in the mortgage and have to pay yourself.
What to expect
Buying your first house involves a lot of things and it is good to know what you can buy. But also what do you want. You can go for the high price, but you also want to have a nice life, go on vacation and buy a new washing machine when the old one breaks down.
Be well informed and do not make snap decisions.
