Tips to increase Budget for a New Home

 The first step in buying a new home is to create a budget that can accommodate all of your wants and needs. This means taking into account how much you can afford to spend on a mortgage payment, property taxes and other related expenses. In addition to these costs, you may also want to consider the following items:

Mortgage insurance. If your down payment is less than 20 percent of the home's purchase price, you'll most likely be required to pay for private mortgage insurance (PMI). PMI protects the lender if something happens and you default on your loan.

Homeowners insurance. If you're financing more than 80 percent of your home's purchase price, lenders require you to carry enough homeowners insurance so that the equity value of your property is at least 20-30 percent of its market value.

Utilities. Utility companies generally don't provide estimates for new customers until after they move in; however, once they do have an estimate, it's important to factor this into your budget so that you have enough money left over for other household expenses such as groceries and gas. Most utilities will require an upfront deposit that ranges from $100-$500 depending on which service provider you choose; although some may require nothing more than a credit. Sobha HRC Pristine is a project by sobha develoepers, which offers good utilities and budget friendly properties as well

It's time to buy a new home, but money is tight. How can you afford the down payment and closing costs?

Down Payment

Use your savings or sell your current home. If you have a 20% down payment saved up, then a lender will consider you a good risk and may offer you better loan terms.

If you don't have 20% to put down, then consider paying cash for your house. You'll need to find a buyer who's willing to accept all cash instead of holding a mortgage. Talk to real estate agents about this option.

Closing Costs

Closing costs can add up quickly, especially if you're financing more than 80% of the purchase price of your home. These are fees paid at closing (when you sign papers). They include things like title search, appraisal fee and recording fees among others. Closing costs vary by state, so check with your lender or real estate agent for specifics in your area.