Buying a home is a stressful experience from start to finish, and it’s fraught with tough decisions along the way.
One of the biggest things that people looking for a new home worry about is how they will be able to afford a new home and how they can afford all of the new fixtures, fittings, and furniture that goes with a house move.
The news is not good for most people. The average cost of buying a home in the US is around $269,000, and with prices rising all the time, it means that it’s getting harder and harder for people to get onto the property ladder.
So how can you save money when you’re buying a new home? Here’s a list of tips that don’t require a big change in lifestyle:
Choose a Cheaper Builder
There are plenty of cheap builders out there who will build your new home for less than half the price of their competitors. You can also do your own build if you have DIY experience and someone to help with the heavy lifting. (I don’t recommend this for everyone and only if you know what you’re doing.)
Hire a Professional Realtor
A professional realtor like Compass will make the whole process of buying a home much easier and can save you time by doing all the hard work for you.
Use a Mortgage Broker
There are loads of mortgage brokers who specialize in building new homes, and they can save your interest rate by around 1%.
Borrow Against Your Existing Home
If you already own a home, then it may be that you can get a better deal on your next property if you do it this way. This will be cheaper than buying new, but you’ll still have to buy the property outright with no second mortgage. You’ll need to market your existing house and look at all the demands of the current owner.
Get the Best Rate
It’s important to shop around for your mortgage to get the lowest rate that you can, as this will save you money down the line. Also, don’t forget that once you start paying off your mortgage, it will cost less than if you were paying over 25 years.
Compare Different Lenders
Make sure that you compare different loans so that you don’t buy something too big too soon. Some loans are geared towards people buying larger properties, so it’s worth comparing them with each other before making any decisions about which one is suited to your needs.
Look for Deals
If you register with a builder or realtor before you start looking for houses, then they may be able to make you offers on the property as it becomes available. This way, you can get a better deal and save money on the price of the home.
While spending as little as possible, don’t forget that safety is important and that feature-rich appliances will keep your utility bills low and make your home more comfortable overall.