Often in my business, I find myself dealing with buyers who contact me for the purchase of a property, impatient to see it without having made any assessment of their actual spending capacity https://www.dignityproperties.com/
The most common answer is:
“First I find the house, then I go to the bank”
in addition to being conceptually wrong, this system is not efficient for those who are really looking for a home.
Advantages of financial advice for buying a home
Carrying out a preliminary financial analysis brings several advantages:
It allows you to precisely identify the real budget for the purchase of the house, allowing you to discard those that are too expensive and identify those most in line with your spending ceiling.
Understand if you really need to buy in a certain area, or if you need to travel to be able to make a purchase in line with your availability.
Carry out a financial planning of the family on the basis of the mortgage payment that you will want / will be able to support.
Knowing in advance all the costs (or at least the fixed ones) of the operation will allow you to release the necessary sums in time, making you avoid wasting time that could make the deal vanish.
Avoid that you can “fall in love” with houses that you really cannot afford.
HOW DO YOU DO THE FINANCIAL PLANNING FOR THE PURCHASE OF A HOUSE?
Below we will divide the costs for buying a home into 4 categories :
Cost of the house
Additional purchase costs
We will find the details of the various expense items, how they are calculated and how to consider them.