A house is the single biggest purchase you will make in your life. First time home buyers are particularly susceptible to financial obstacles.
Wouldn’t it be great to purchase your dream home, and save some money while doing so?
Read our tips below to find out how to save a lot of money fast when purchasing a house.
1. Check out Multiple Lenders
Interest rates will always vary between different lenders. They will also offer different perks like cashback or insurance discounts.
It is worth getting quotes from at least 4-5 different lenders to get the best value for money when taking out a mortgage. If you have different quotes from other companies, you will be able to negotiate lower rates and get a better deal with your first choice.
2. Have More Saved for the Down payment
The easiest way to save money when buying a house is to have more money saved for the down payment. The more money you have saved, the less you need to borrow. You could also benefit from lower interest rates and a shorter mortgage term if you have a higher down payment.
Some lenders may require you to take out mortgage insurance if you have a low down payment. This ensures that they still get paid if you default on your payment.
3. Increase Credit Rating
Before purchasing a house, get rid of outstanding smaller debt like credit cards and car loans. Clearing these loans will help improve your credit rating.
A good credit rating will help you secure a loan with a smaller interest rate.
4. Purchase A House in Winter
Many sellers put their houses on the market in the Spring and Summer because most buyers purchase at this time.
It is normally convenient to move schools and jobs during the summer break. You could save thousands of dollars if you just wait until winter to purchase the house.
5. Home Inspections
No matter if you are purchasing a new build, or a period property, you should organize an inspection before you commit to the purchase. This could save you thousands of dollars in structural repairs, mold removal, and rewiring.
6. Shop Around
When you first consider purchasing a home, look at what is available on the market, what the list price is and eventually what that house sells for. This will give you a good indication of the difference between the listed price and agreed sale price.
Research housing trends in the area you want to move to. Plan to save at least 20% for a down payment.
Don’t be afraid to take on project houses, if you find one at a bargain price. Often, you’ll spend a lot less than a finished home, and the house will be designed to your personal taste.
House and land packages are worth considering if you can't find your dream house on the market already.
How to Save a lot of Money Fast When Purchasing Your Home
Now you know how to save a lot of money fast when purchasing a home. Always research and look for better deals when purchasing a home. Waiting and researching every aspect of a home purchase could save you thousands of dollars.
Understanding the market conditions in your ideal area will help you afford your dream house within your budget.
For more homebuyers advice, check out the other articles on our blog.