Buying a house is one of the biggest financial decisions you’ll ever make. And for that reason, it’s natural to look for ways to save money.
As difficult as it may seem, there are steps you can take during the buying process to save. Here are five ideas to consider:
1. Consult with an experienced real estate agent
An experienced real estate agent knows how to save you money at every stage of the process. They can help with negotiations. They can share contact information for affordable inspectors and contractors. And of course, they can help you avoid mistakes that could cost you time and money now and/or in the future.
2. Negotiate, negotiate, and negotiate some more
If it’s something you can negotiate, you should consider doing so. Even if this isn’t something you enjoy, there’s a good chance that it’ll save you money.
For example, you don’t have to pay the asking price for your home. It’s okay to come in below list and then negotiate from there.
Once you have a deal in place, negotiate on other things such as closing costs.
3. Consider a shorter term mortgage
The shorter your mortgage term, the lower your interest rate. Furthermore, a shorter term also allows you to save money on interest over the life of the loan. So, if you can afford a 20 year mortgage instead of a 30 year mortgage, consider doing so.
4. Buy during a slow time of the year
When the real estate market slows down, generally during the school and holiday seasons, get serious about your search. With less competition, sellers are more likely to negotiate.
5. Improve your financial standing
Your financial standing can impact how much your home costs over the term of your loan. For instance, if you have a good credit score, you may qualify for a loan with a five percent interest rate. But if you have an excellent score, 4.5 percent may be doable. This doesn’t sound like a lot, but it will save you thousands in the long run.
These are far from the only ways to save money when buying a house, but all of these ideas should at least be considered. The more of these you take advantage of, the greater chance there is of saving here and there.
Can you think of any other ways to save money when buying a house? What strategy did you use?