Buying Your First Home: Budget For These Unexpected Expenses

Buying Your First Home

Buying your first home can be full of pitfalls and making mistakes is almost inevitable. The point is to avoid all the bad ones that will cost you in the long run. One of the biggest mistakes made by first time buyers during the house relocation process is forgetting to budget for unexpected expenses. There are so many things that need to be paid for when moving home that it is easy to forget about some of the additional expenses that crop up at all stages of the proceedings. Everyone remembers about the obvious things like paying for a removal company, solicitors fees and search fees, however there are plenty of other things that crop up, and if you fail to prepare adequately for these you may find yourself out of pocket which can only add stress at a very challenging time.

One of the main unexpected expenses that may arise is the cost of making any necessary repairs that show up on searches or during the house relocation process. Although some of these repairs may not be too costly to rectify, others can be very costly to deal with. Problems like mould, damp or structural damage can eat into your budget if you are unprepared.

Buying Your First Home

While many first time buyers arrange a mortgage without too many problems, they may forget that there is a mortgage broker fee or mortgage arrangement fee to pay. While some companies add this to the total cost of the mortgage others will demand payment up front. Finances are something you should always have in mind and where money is involved, you should always be careful. Do the math, then do it again, then check all contract stipulations relating to money. Always be aware of what you are paying for and what you have to pay for.

Furniture and redecoration is one of the most common areas that new buyers forget to budget for. This is especially important if moving from a fully furnished rental accommodation. The cost of equipping a new home can run to thousands of pounds, and even replacing items such as white goods is an added cost that many first time buyers forget to feature in their budget.

One of the best ways of preparing for unexpected expenses when moving home is to write a moving checklist outlining all the possible and known expenses that can be encountered. Add up the total and then figure an extra 10% on top to make sure there is leeway in the budget. That way, there will be no unpleasant surprises on moving day.