6 Money-Saving Tips for Home Buyers
Posted by Eric Skates on
Home buying is a very large purchase decision requiring a lot of thought and planning. For most purchasers, the question to buy a home becomes whether the decision to be "in debt" for the next fifteen to thirty years is worth the investment. Then there is the down payment, which alone can cause significant hardships on low to middle-income families.
Yet purchasing a home comes with significant benefits. Owning a home is more reliable, and can save significant money in the long term. After fifteen to thirty years of payments, your mortgage is paid off and you need only worry about insurance and taxes. Renting, on the other hand, is a never-ending cycle with no finish line.
With this in mind, it becomes imperative to save as much money as humanly possible when purchasing your home. Here we have several useful tips on how to stretch your dollars and get the best deal on a home.
1: Aim For Your Best Credit
The very best way to save money during the home buying process is certainly not the easiest. If you don't currently have the best credit score now may be the time to try increasing it. The higher your credit rating, the lower your interest rates will be. Even a ten or twenty point difference could prove significant in obtaining a low-interest mortgage.
2: Shop Around for a Loan
When it comes to home loans, not all are created equally. You want to find a company like Equity Prime Mortgage which offers a combination of affordable loans and excellent customer service. Sometimes this means choosing the loan with a slightly higher interest rate, but having your concerns addressed immediately is well worth it.
3: Consider "Fixer-Uppers"
Fixer-upper properties come in varying stages, from complete renovation projects to a little cosmetic work. If you're a handy person, the tradeoff between a little extra effort to save a few bucks could be worth it. In fact, homes needing repairs could be listed at half or a quarter their market value.
For example, you may luck out on a home worth $500,000 for a purchase price of $200,000. This means that you could potentially invest up to $300,000 in repairs and still be well within a reasonable price. Some loans even allow for extra allotments just for fixing up a property.
4: Bargaining
No house price is set in stone, so feel free to offer a slightly lower price. This works especially well for homes which have sat a while. You might not be able to get a million dollar home for a hundred grand, but lowering the price to $750K is well within the realm of possibility.
5: Consider Expanding Your Search Area
If all the homes in your search area are over your budget, considering expanding that search. This may not be applicable to all people - such as those who want to stay in the same school district - but if it is an option you may be able to save money just five or ten minutes down the road from your original boundaries.
6: Enlist Free Help
During both the process of moving (after securing your new home) and finding your dream house can be exhausting. Enlisting some free help can save you significantly.
For example, if you have children then you could ask a family member to watch them when you have meetings. You can ask close friends and family to help move in or clean your new home. Ask your sibling, best friend, or parent to go with you (and, if applicable, your spouse) when viewing homes.
If you utilize the tips above you can save a potentially significant amount of money during your home buying experience. Ready to start Your Loan Journey with Equity Prime? Click Here to start a prequalification application or call us toll-free at 877-255-3554