5 Ways to Save Money When Buying a Home

Your home is the most expensive thing you’ll ever purchase and cherish for the years to come. Start building equity in your home instead of paying rent to someone else. First of all, decide how much you can afford both upfront and closing costs then consider a down payment and a monthly mortgage payment. This information will help you estimate the costs you can save.

If you want to save money and make home-buying less expensive, follow the below tips that are simple yet strategic actions you can take.

Buy near an upcoming area

Buying a house near is great by which you can save 20-30 percent on the purchase price. And most importantly, you’ll see faster appreciation rates. To save money purchase a home near a neighborhood, don’t mind if there are any repair works. You can renovate after buying the property. This saves you money upfront and allows you to control your costs.

Avoid standard commission

Real estate agents will help their clients in choosing the perfect home, negotiate the price, and complete all the legal aspects of closing. After the process of home buying, they usually receive a 3% commission. But depending on how much you buy, you can fix the rate which will help in huge savings.

Negotiate Closing costs

If you are unaware, closing costs will hit you hard. On average, the closing cost will fix the range between 3 and 5% of the home purchase price. It includes lender fees, title, attorney, escrow, termite, appraisals, and interest fees. When buying negotiate the cost to save your money.

Get quotes for home insurance

Before you sign the contract and purchase a home, you must secure home insurance that will be added to a mortgage payment. Look for multiple providers who will offer low rates and the best coverage.

Make a higher down payment

Making a higher down payment can save you on several fronts. It helps the seller to accept your offer, even though it may be lower than others. You can pay less interest by taking out less money in the form of your mortgage. By this, you can avoid private mortgage insurance(PMI).