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How To Manage You Budget When Buying A Home

How To Manage You Budget When Buying A Home

9th December 2019 | Super Administrator

Buying a property is exciting, and it can be easy to get carried away, seeing great places that are out of your budget. The process of buying a home can be overwhelming and comes with many decisions and large financial outlays. City or village home? Mid terraced or detached? Bungalow or an apartment? Is parking a must? There is a lot to think about, and each homebuyer will have their unique needs. This means that budgets vary hugely. Your home will likely be your biggest financial investment, so you want to ensure you get it right. The most important thing to consider is your budget and to avoid buying a property that you can not afford. Here are some tips on how to manage that budget:

Income - Add your earnings to any savings you may have and be sure to include any shares and dividends. Try to use a spreadsheet as it is clear, easy to edit and helps with calculations.

Plan Ahead - Get on top of all paperwork. Ensure any store and credit cards are paid where possible. Make sure these have a low credit limit as this will go in your favour when applying for a mortgage. Shred old paperwork and organise anything current and relevant. Be sure to have easy access to a year's worth of bank statements and utility bills.

Outgoings - Use a spreadsheet to list outgoings, when they come out and how much. This will not only show you what you are spending but also give you a clear view of where potential cutbacks can be made.

Create Your Budget - Compare your income with your outgoings after making any cutbacks that are possible. Use this to develop a realistic budget plan. Try to keep the budget to a strict figure rather than saying 'between this amount and this'. This will help you stay within your affordable limits and not over-commit.

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