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How To Finance Your Dream Home

Whether you’re building from scratch or buying a pre-existing home, the process of moving into your dream location is exciting. You’re finally going to be somewhere you’ve always dreamed of being, surrounded by the features and people you love. Your dream home should never feel like a chore; instead, it should feel like an achievement, the culmination of everything you’ve been working towards for your whole life.

Of course, there are practical considerations you’ll have to take into account when you’re in the process of moving. If you’re building from scratch, there are things like builders, materials, and location to consider. If you’re just moving, you’ll have to think about what needs doing to the place before you (and potentially your family) occupy it. Either way, one of your primary considerations should be financing the home. Here’s our guide on how to finance your dream home.

Think about your assets

What do you currently have that you could put towards the home? This should be your first and most important consideration. If you’ve got some savings stowed away, or if anyone in your family has, then you could think about pulling from that stockpile. After all, if this isn’t the moment you’ve been saving for, then what is? You could also think about what you might have that could help you to secure a loan. A loan might not get you all the way to your dream home, but it could help you make that final push. Consider logbook loans if you’ve got a vehicle that you own. Logbook loans are a great way to shore up some cash; they’re reliable, safe, and if you find a high-quality provider, they won’t see you wrong.

Check your income and expenditure

Before embarking on the journey to buy or build your dream home, you’ll first have to know how much money is available to you. It’s worth carrying out a financial health check to see what kind of money you’re looking at. This check should involve how much you’re earning, how much you’re spending, what debts or other obligations you have, and everything else relating to your personal finances. It won’t do to miss anything out; if you aren’t completely honest with yourself, then when it comes to financing your home you’re going to find yourself out of pocket and well out of your intended budget range.

 How To Finance Your Dream Home

Set long-term goals

Since this is your dream home, you’re probably going to be living in it for at least the foreseeable future. With that in mind, you’ll want to set long-term goals for the place. How long do you intend to live there? Most families will live in a property for around six years. Does this sound like a realistic goal? It’s important to set goals when you’re financing your home because these will inform the scope of your price range. For example, if you’re not intending to live here forever (even if it is your dream home), you can probably opt for something a little less pricey. If you’re dead set on a property and know you want it even though it’s a touch outside your price range, you know it’s worth spending extra because you’ll be there forever.

Seek external advice from financial planners

There can be so many hidden costs associated with buying a house that it can be hard to predict or understand them all. Unless you’re personally qualified as a financial planner, it can really pay to seek external financial advice. A financial advisor can tell you things like how many extra fees you’ll be paying, how much it will cost to complete your home rather than just buy it, and what actions will be most cost-effective. It’s also a good idea to look for a mortgage advisor who can tell you what the best mortgage to opt for would be, as well as whether there are any extra costs in your mortgage you’ll need to consider.

 How To Finance Your Dream Home

Think about renovation

Many properties are available on the market that need a little extra TLC before they’re ready. Whether you’re renovating or knocking down and starting anew, sometimes it can be a good option to buy a property that’s in need of a little love and applying it. If the property is in the perfect location for you and your family, then renovation is the perfect solution; you can make the property look and feel however you like, and you’re probably buying it for a little less than regular market value. Of course, you will still need to furnish the property, and the costs of a full renovation might end up outweighing the money you’ve saved by buying a home in need of renovation. You’ll have to make this decision on a case-by-case basis, but in many cases this can save you money.

Start preparing by making cutbacks

If you want to finance your dream home, it’s possible you’ll need to make some financial concessions in your life as it stands now. That could mean cutting back on inessential services like Netflix or Spotify, or it could mean lowering your food consumption and opting for own-brand instead of more commercially advertised brands. By doing so, you’d be amazed how quickly your finances will build up and how quickly that new-home fund will start to fill up. There are lots of little financial life hacks that, when combined together, will really start the cash flowing. Keep your life as frugal as possible and before you know it, you’ll be able to afford that deposit.