Buying a home is one of the most monumental moments of any adult’s life. It is the chance for a new start, to take control of your lifestyle and independence, and have the opportunity to start a family with the one you love. On the flip side, buying a house can be the most stressful, time-consuming and costly affairs of your life.

We all know about the major costs of purchasing a property, with the deposit and the mortgage, as well as forking out for furniture for your new home at the top of the list. But there are some unforeseen costs which nobody tells you about until you are already part-way through the process, today we are going to take a look at these hidden costs. It might make you have to rethink whether you can afford to put an offer on the house right now. If you are worried about the down payment on a house, you can always check out this article to let you know how much you should pay.

Attorney’s Fees

The first kicker when it comes to buying a house is the attorney’s fees. You will have already searched for a home, gone for viewings, put an offer in and been accepted before these charges become apparent. It all depends on where you go. There are tonnes of lawyers to go to when you are looking to buy a property, and the fees are relatively standard. However, you can still shop around to find the lowest cost if you like, however, sometimes the lower price is reflected in the service you receive. Consider asking friends and family who they chose and work from there. You may find that the result is a little more pricey, but if you can work with a company that is trustworthy, it is worth the extra cash.

Home Buyer’s Report

When you apply for a mortgage, the lender will ask you to complete a home buyer’s report to check the house for any faults and damage. If the home you are looking to purchase fails the report, the house cannot legally be sold, and you will have to find something else. Although it is an annoyance, it’s in your best interests to have this because it prevents you from buying a damaged property and having to pay out for repairs.

Repairs

If the home buyer’s report passes but comes back with a few minor faults, these are extra costs you will have to consider once you move in. You may have to replace the boiler, make sure windows are double glazed, or tile the roof, which will add to your expenses.

If you don’t opt for a full survey to be carried out, once you move into the property you may be faced with repairs that you weren’t aware of previously. For this reason, it is recommended to get a full survey on any house over 100 years old. If not, you can opt for a slightly less in-depth survey which will still give you information about the inside of the property.

Stamp Duty

Stamp Duty is one of those niggling little costs that only creep up when you receive your contract. Stamp Duty is land tax, which everyone has to pay on their property upon purchase. The tax will range depending on the size and location of the house but is worked out as a percentage of the value of your home. You can calculate it here.

Home Insurance

Home Insurance must be put into place from the data you exchange contracts, meaning that even if you don;t move in on your exchange date, you are already paying home insurance on your property. Paying for your home insurance ahead of moving in is a minor annoyance, however, is essential to secure the safety of your home.

Temporary Accommodation

If you aren’t lucky enough to be living with parents or friends as you go through the moving process, you must think about the cost of your current accommodation. Whether that be your current mortgage or rent, it can eat away at your savings.

Storage Costs

Many people like to start building a collection of items for when they move into a home. You could be beginning to stock up on furniture, appliances, kitchen utensils or towels- but you will need somewhere to store them all. Hiring out a storage unit is a great way to relieve the stress of moving everything from one property to the next, because it will all be in one single location ready to go. However, if you face unforeseen difficulties with your purchase which slow down the process, such as probate or environmental issues, you may have to hire out the unit for a longer period.

Moving Costs

Finally, the day has come where you’ve got the keys to your new home, and you can begin to move everything in. Unless you or a family member have a van you can borrow, you may have to fork out for a moving truck or rent a van for a couple of days to move everything into your home. It can be a long process, but once you have settled, it’s worth it. Shop around to find the best value hire companies in your area.

Random House Costs

Once you’ve moved into your new property, you will be faced with some bills. You will have a few different costs to think about when setting up your home. First up, electricity, gas, and water. Usually, when you take on a property from its previous owner, you can simply transfer the existing setup to yourself- freeing up some time trying to hunt for a new deal. You can, of course, set up your own, and this will involve comparing companies and packages with what suits you. The same goes for broadband, tv, and phones. You may want to set up a package deal with all of these thing included at a discounted rate. It’s up to your personal preference and needs.

When you’re buying a home one of the biggest considerations is your down payment. Depending on the loan you are getting, you may have a specific requirement for how much you want to put down. That’s the minimum for that loan, though, and doesn’t mean you can’t put down a larger amount. But should you? That’s a choice only you can make. Before you decide on what level of down payment you want to consider, take a good look at your finances and be sure that any down payment amount you choose won’t leave you in financial peril.

Putting 20% Down

Among your down payment options is choosing to put 20% of the purchase price down on the purchase of your home. This option is often chosen because it generally avoids the requirement for you to pay Private Mortgage Insurance (PMI). However, not everyone has this level of down payment, and there are times when it pays to keep money where it is and not pull it from savings or other investments to use it for a down payment. In some instances, you could actually lose money by trying to avoid PMI with 20% down.

5% and 10% Down Loans

For people who don’t have a 20% down payment or don’t want to put that much money down on their home, 5% or 10% as a down payment is relatively common. Most people with good credit will qualify for these types of loans through various banks and credit unions, along with other types of lenders. Paying PMI will be required as a part of these types of mortgages, but in a number of cases, this PMI amount will not be high. With a low PMI and the ability to leave money in the bank or in investments, this can be a chosen option for many buyers.

FHA and the 3.5% Down Requirement

When people choose a Federal Housing Administration (FHA) loan, the minimum amount they can put down with good credit and solid income is generally 3.5%. In some cases, an FHA loan may require them to put down more than that, such as 5%. The money they put down can be from their own funds, or it can be a gift from someone else, but it cannot be from a loan. There will be PMI required because of the small down payment, but this can allow people who do not have a lot of money to purchase a home so they no longer have to rent.

No Money Down Loans, Like USDA and VA

In some cases, the Veteran’s Administration and the USDA offer loans where a person doesn’t have to put any money down. There are specific requirements for these loans, and the seller of the home may be asked to pay closing costs in the transaction. Additionally, good credit is generally required, and for USDA loans, there may be specific areas in which the property has to be located. This can be a hindrance for someone looking for property under these types of loans, but the lack of a down payment can also make them attractive to some buyers.

Putting a Larger Amount Down on Your Home

Another option is to put much more than 20% down on a home. Some people do this on investment properties, but there are also people who choose this option for their primary home. They may do this to reduce the size of their mortgage payment, get a mortgage with a shorter term, or otherwise get more favorable offerings from their lender. They may also have money available to them that they aren’t investing, so they want to use it in a way they feel is wise. Paying more down can be an option for people with higher levels of income or savings.

No matter which option you choose for a down payment, it’s often best to consider a variety of options. Then you can make the right decision based on your specific needs and situation. There is no right or wrong choice when making a down payment on a home, because everyone has different circumstances. The ‘right’ down payment choice is the one you’ve thought about, understand, and that works for you.

Credit cards are an ever expanding form of payment in the financial world, for both the consumer and the provider. If it is your first time buying a credit card, it can be quite overwhelming and confusing on what it all means. Here is a simplified list of what to expect from owning and using a credit card.

The Procedure of Making Payments

A credit card allows you to make instant purchases without the requirement of physical cash. Whatever provider you choose, you are set on a prearranged amount of money which you can spend on, but must pay back. This is when it gets a bit complicated, so let’s clarify. After a purchase, you have a ‘grace period’, which means you have up to 56 days to pay off the card without incurring any interest. Ensure that you never delay the payments of your bills. If you do, you can expect to have unexpected charges and penalties to pay off.

How to Keep your Financial Details Safe

We all like to feel secure when it comes to money, which is why it’s important to understand credit card safety. As soon as the card arrives in the post, sign the back of it straight away. This means that if it gets lost or stolen, you’re protected. Never give your account number to an incredible source. This includes giving any information over the phone (unless you initiated the call and talking to a bank), posting anything on social media or answering emails which ask for personal information (a bank would never do this). Check your account activity regularly for purchases which you haven’t made, either online, on the phone, or through paper statements, it’s easy and doesn’t take up a lot of time. If you feel like you’ve made a bad decision or the card looks fake, you can establish the legality of your card by using a reliable credit card validator. Finally, if you have lost any cards or feel like any fraudulent activity has occurred on your bank activity, go with your gut instinct and contact your bank or card issuer.

Features of a Credit Card

Many credit card users don’t understand all of the features which come with it. The biggest quality of a card is the credit limit which is attached. For first time consumers, a lower limit may be set by the issuer, meaning you need to watch how much you spend. Contact less payments are great for quick and efficient payments, especially when you’re in a hurry to get home for the football game. Any purchases under $100, simply tap your card against a contact less reader to make a fast purchase. You can also use a credit card for cash advances and balance transfers. Specific credit cards come with extra features such as, international travel insurance, extended warranty with best price guarantee cover and complimentary airport lounge access. Before deciding on a credit card, do your research and pick the best one which suits your needs.

Expert or not, credit cards can catch out the smartest of users. Which is why it is essential to always plan ahead and utilize the web for helpful information.

A home insurance policy is a great way to secure one of your biggest investments. That said, a lot of us are quite apprehensive about the home insurance premium. But it is essential that you get a proper home insurance policy to safeguard yourself against any distress caused in the event of a mishap. It’s all about doing some homework and get your basics right when it comes to home insurance requirements.Don’t know how to go about it? No need to worry, read on.

Today you can find a lot of home policies from insurance providers, offering different types and levels of coverage. Naturally, the first thing therefore to do is to analyze your coverage requirements carefully. With this understanding in place, you will be in good position to know what to look for and make an informed decision.

Another thing on similar lines is to identify what type of coverage is needed for your house. Basically, there are two types of home insurance coverage one can opt for. A home insurance that covers just the structure will only insure your house against structural damages. While on the other hand, a home contents insurance policy will cover your household items against loss and damage. For instance, if you happen to live in an area that is prone to floods, go with structural home insurance. In case your house is susceptible to theft and burglary, it makes sense to go with the cover that offers content protection.

In the event that you need both types of coverage, it is advisable that you subscribe to the same home insurance company. This will help you save on the policy premium as well save the troubles and hassles arising during claims.

Another great tip to get the best home insurance deal is to compare policies online. You can find several aggregators and comparison sites on the internet that present you with in-depth comparisons. This is a great idea to avail the best offer. Additionally, there is a high chance that you will get a good discount on the premium too. This makes it a win-win for the customers.

Next, you should ponder about something called as the ‘excess’. Simply put, it is the amount that you pay out of your pocket during a claim settlement. The simple calculation here is that the excess is inversely proportional to the premium. However, this needs to be thought through as it is all about striking the right balance between the two.

You can also reduce your premium costs by installing safety equipment such as fire and smoke alarms. An anti-theft alarm is also something that’s gaining popularity these days. With such precautions in place, the insurance company will reduce the perceived risk for insuring your home and will in turn reduce the premium.

Once you have finalized the policy, you can aim for the no-claim-bonus. When you don’t file a claim for a certain period of policy coverage, the insurance company will offer a discount on the premium during renewal. However, this varies across companies and thus needs to be checked before buying. That’s it! With the help of the aforementioned pointers, you will be able to get the most out of your home insurance policy.

In today’s internet savvy world, we all purchase something or the other online. From apparels, airline tickets, to gadgets, literally EVERYTHING is only a few clicks away! Even while writing this article, I ordered for a purple kurta to be worn in my office Holi party!

In fact, it’s not just clothes and groceries that are selling like hotcakes in the internet world, as people are buying insurance online as well.

Either you or someone in your acquaintance might have bought bike insurance online. After all, as per the research across 18 cities, more and more people are buying insurance online. Of the 3007 respondents,24% purchased motor insurance online.

However, if you are reluctant about going ahead with the online mode and prefer the conventional mode of arranging a meeting with various insurance agents and visiting their offices for detailed discussion, this article is meant just for YOU!

Benefits of online buying/renewing bike insurance:

Buying or renewing bike insurance online can prove advantageous in various ways, such as:

1. Automated servicing: The online platform is not meant for buying insurance only. As a prompt and efficient servicing channel, current policyholders can adopt the online mode to renew their policy as well, regardless of whether they purchased their policy online or not. Further, with just one click, you can download product literature like brochures, policy wordings, etc. and get instant premium quotes online.

2. Online assistance: If you are purchasing the insurance online, it doesn’t mean you will not get any assistance. Most of the insurance companies have live chat facility on their websites where customers can seek clarification in case of any query. Also, customers can call on the toll-free number of insurance companies to clear all doubts. You can go further and ask the insurer for a face-to-face meeting. The insurer will send an executive for further assistance.

3. Paperless transactions: Getting into paperwork is both time consuming and boring. But when you go online to buy an insurance policy, it requires just a few easy steps. Besides being efficient, you are protecting the Mother Nature by going paperless!

4. Time-saving and convenient: To purchase insurance offline, you need to go through the tedious task of filling long insurance forms. However, when you buy insurance online, you need to submit only a few details. Also, at the time of policy renewal, it’s easy to reload your information. As the insurer already has your details, you only need to submit your policy number. Further, insurance companies have designed an easy-to-understand user interface which has made the entire process of buying the insurance quicker and easier. And who wouldn’t love to cut the hassles of going out and standing in long queues, when buying and renewing of bike insurance can be done from the comfort of home. While watching the ‘Friends’ season on television, or during the office break or even from your mobile, bike insurance can be purchased in a hassle-free manner.

5. Cheaper premium rates: It is disheartening to see that nearly 75% of two-wheelers plying on roads are uninsured even when it is mandatory to have a third-party insurance to ply your vehicle on roads. Many times, people avoid the insurance to save some penny.However, buying a bike insurance online ensures additional savings. The insurance quotes are given for free, and in fact, you can ask for as many quotes as you want. Moreover, there is no obligation to purchase either! As there is no involvement of any agent and the insurer saves on paper and administrative cost, the same is passed on to policyholders in the form of cheaper premium rates.

6. Away from nasty agents: Though, an insurance agent plays an important role, sometimes they may not be helpful. Often, insurance agents prove to be pushy and may even have vested interests in a particular insurance policy. But when you go online, you get an option of comparing and choosing the right insurance policy after analyzing every aspect carefully. Also, there will be no interference or biased suggestion from insurance agents!

7. Instant policy issuance: When you buy a policy offline, the insurer takes a lot of time in processing physical documents. Whereas, in the internet world, the processing of information is instant and so is the issuance of your bike insurance.

8. Storage of policy documents at one place: When you go online, you will always have the soft copy of your insurance policy in your email. It means, you can access your policy anytime and anywhere. Did you know the Insurance Regulatory Authority of India (IRDAI) has introduced a digital motor insurance initiative known as e-VahanBima?It says that you don’t need to carry your motor insurance policy document every time you take out your vehicle on the road.

9. Check policy review: As you do it at the time of purchasing other things on the internet, you can check the reviews of previous customers and their experience with the insurance company before going ahead. It means, you can compare features of different policies and know about the reputation of a company before zeroing in on.

10. No impact of demonetisation: I know, the ‘demonetisation phase’ is over, but what if the government comes up with its second season? As it is said, ‘once bitten, twice shy’ so, go for the online mode to ensure that any cash crunch scenario doesn’t affect the process of buying or renewing bike insurance. All you would require doing is, log on to the insurer’s website and fill the important details, including policy information, vehicle registration number, add-ons, if any, and make payment via net banking.

Remember, accidents happen unannounced.Therefore, the least you can do is, apply for a comprehensive bike insurance that takes care of the associated expenses and ensures your financial security.

Further, it is reassuring to know that buying bike insurance online doesn’t pose any serious safety threats as every step is taken by an insurer to keep your personal information confidential.