One of the first things you need to figure out is: how much house can I afford to buy?
We would all love to be able to house hunt where the sky is in the limit when it comes to the budget, but sadly, most of us have only our hard earned savings as well as what the bank is willing to lend us in a mortgage, to pay for a property.
So what should your property budget be? How do you set a budget range for your first apartment or house?
The Essentials – Things to consider
The following are a list of the main things you need to figure out before you start your house hunting process:
- How much savings and cash you have for the deposit
- What is the maximum you can borrow on a mortgage
- What is the maximum you can spend on monthly mortgage payments
- What government support you can get, including the Lifetime ISA and the various Help To Buy schemes
- Understand roughly the running costs of owning a home, compared to your current situation (i.e. renting)
Without having a clear answer for any of the above, it is pointless to start browsing property listings or going on home viewings. Understanding your budget range will help you hone in on the areas, property sizes, and property types that you can afford.