If you have decided that 2022 will be the year you sell your current home and find your forever home or wave goodbye to renting and take your first step on the property ladder, there are a number of financial decisions you must make beforehand. It is, after all, likely to be one of the most important financial decisions you will ever make. If you are struggling to know where to begin when it comes to how to budget for your new home in 2022 as we prepare to bid farewell to another year, continue reading to find out everything you need to know.
Save more than what you think you will need
It may sound silly but during the process of buying a brand-new home, there are several hidden costs involved that many homeowners fail to prepare for regardless of whether they are experienced homeowners or first-time buyers. The cost of your mortgage deposit should always remain at the forefront of your mind whilst you are building your savings, but you must also factor in the cost of broker fees, stamp duty, gas and electricity bills, building and contents insurance, council tax, homebuyer surveys, property valuations, and legal fees to the equation. It can allow you to budget accordingly throughout the entire process and prevent you from exhausting any emergency savings funds.
Pay off any outstanding debts beforehand
In order to budget for your new home in 2022, it may benefit you to pay off any outstanding debts beforehand. It may be entirely possible to buy a home with outstanding debts attached to your name, but this may only render the entire process more difficult than it needs to be from start to finish or result in you experiencing setback after setback. It will also allow you to boost your existing credit score and, perhaps more importantly, provide you with much-needed peace of mind at a time when your personal finances will be under intense scrutiny from a number of external bodies.
Shop around for the best mortgage provider for you
If you are wondering how to budget for the milestone of buying a new home, it may be worth taking the time to shop around for the best mortgage provider for you. It can be tempting to opt for the first mortgage provider that agrees to accept your mortgage application but with so many options to choose from and so many opportunities for disaster, you must be confident that you have made the right decision for you and your loved ones before you proceed. If you are overwhelmed by the sheer number of available options or just need a helping hand, make a note of your individual requirements and shortlist suitable candidates.
Need more advice?
If you have decided to become a first-time buyer or sell your current home in the new year, get in touch with our team of dedicated experts to find out what your options are and begin saving for your dream home today!