Buying a home in the current market can be expensive and time-consuming. Many people want to get in and purchase their very own home, but they worry that the prices will be too high and they will not be able to afford to jump in at the right time.
No matter what type of home you would like to purchase or where your current finances are, there are ways that you can save money on the new home you decide to purchase. Some of the sneaky ways that you can save when buying a home includes:
Get in First or Last
It can end up taking a long time for construction to get done on new housing development. Buyers who are willing to move in first will need to endure a lot of construction noise, issues with dirt, sparse lawns, and not all that many neighbors. This is enough to keep a lot of people away from purchasing in these developments right away.
Because there are so many negatives, builders may be willing to offer better deals to those who purchase a home early on in the development. If this doesn’t sound like a good idea for you or you are not ready to move in yet, check back in this area when the construction is close to being done. At this time, builders will offer a good deal to get the work done.
Look Into Short Sales
Photo by Stanly8853 on Pexels
While it may seem a little heartless to benefit from the hardship of someone else, a short sale is going to allow a seller in distress to avoid foreclosure. During this process, the bank will agree to sell the home for lower than the balance of the mortgage, which will mean the home is going to be sold for less than it is worth in most cases.
A short sale is going to be long and challenging and many homeowners do not want to go through all of these steps and wait for it all out. But if you end up successful, you can get a great home that is less expensive, simply because someone else isn’t able to make their mortgage payments.
See the Potential in a Home
The more work you are willing to put into a home, the better price you can get on it. A fixer-upper is often turned down because other buyers do not want to put in all of that work. They want a home that is ready to go, without the work.
These fixer-upper homes are going to be a great option. You may have to put some money into fixing it up, but if the base of it is good and it has a great foundation and no major issues, it can be an affordable home that you just need to put a little bit of work into.
Deal Direct
When you take a look at the listing for homes for sale, take some time to look at those that are sold directly by the homeowner, rather than ones that are listed by a realtor.
When you decide to deal directly with the owner, you avoid some of the pressure of working with the listing agent. And since the seller is not going to pay the 5 to 7 percent commission, there could be some room to negotiate a lower purchase price on the home that you really love.
Look for a Home in the Winter
This one is especially good in the north where the winter months can be long and hard. Home sales are already really slow during the winter, especially around the holiday season. If a seller has to list their home during that time, they know there are not that many buyers and they may have to list and sell for lower than they would in the spring.
If you have some flexibility on your moving time, then look at doing it in the winter. It may not be fun to move in all the snow, but it can save you a ton of money on a new home.
Shop Around with Different Lenders
Never choose to go with the first lender who offers you a mortgage. For most potential home buyers, there are many lenders out there that can provide you with good deals as well, but you need to shop around, and comparing them is the only way that you can make sure you will get the best deal.
The experts at PF Geeks share that you could save hundreds of dollars on your monthly mortgage simply by comparing different lenders. You may be able to get the lenders to compete with one another if you have a good credit background. By showing them a rate from another lender, the original lender may be willing to go down on their offer and you can get an even better rate in the process.
The lower you can get the interest rate, the more money you can save on your monthly payment and the more affordable the mortgage will be. You can also negotiate on some of the closing costs, the down payment, and more.
Look At Down Payment Assistance Programs
There are some areas throughout the country, especially in more rural locations, that will offer down payment assistance to those who need it. The exact amount is going to depend on the area, your credit score, and the price of the home.
Be ready to go through a long application process and more work in addition to the mortgage. Some of these down payment assistance programs are offered through your lender and some are independent and on their own. If you succeed, you can save thousands of dollars when you come to closing on the home while lowering your mortgage payment too.
Purchasing Your New Home for a Steal
Everyone wants to get a good price on their home. And they do not want to spend more than the home is worth to do it. With some of the sneaky tips above, you will be able to get into the home of your dreams, without having to worry about paying way too much in the process.
Feature photo by Giovanni Gargiulo
