Most people out there who are looking to buy their first home think that it’s a straightforward process. They think they need to get their money for their mortgage, speak to a sales agent for real estate, sign on the dotted line and boom, house. It’s a little bit more complex than this, and there is a long list of expenses that you need to know about so that you know what you are paying.
If you have a limited budget when it comes to buying a house, you have to be even more careful. The house is probably one of the most expensive purchases you’re ever going to make, so making sure that you are aware of all of the expenses at the beginning is going to help you to save your time, your stress and your money. Here are some of the top ways you could save money when buying a house.
- Don’t go for the affluent area. Of course, everybody wants to choose a home in an area that is safe, tidy and full of lovely community people. Unfortunately it’s not always a good idea. If you are looking to save money on your home, then you need to look at the areas that are up and coming rather than already established. A hot neighborhood is a hot commodity, but your house budget is not as hot as you hoped it would be. Consider purchasing a house near a neighborhood that needs a little bit of work and be a part of the community that helps to rebuild it.
- Downsize from day one. Most people wait a few years to downsize and sell their home for a smaller place, but if you start out with a smaller place with one of those Modal tiny homes, you are going to be able to have a smaller house there for a smaller mortgage there for a lot less money to spend. Downsizing your home into what you need rather than what you’d like is a good way to also get your foot on the property ladder. It helps you to get in somewhere in the market that you can build up rather than look down.
- Always negotiate those closing costs. Closing costs can really bite you on the behind, and these include things like appraisals, attorney fees, escrow fees, radon testing termite inspections dash you name it they can charge for it. You can negotiate most of these costs and use different people to be able to get inspections done including radon testing. In doing this, you’re going to save a couple of $1000 right away.
- Shop around when it comes to insurance. For any insurance that you buy, you always compare your options and get the most insurance for the least price. You have to do the same thing for your home and your contents insurance. Why should you pay more when you don’t have to? Take a look at all of your options before you commit to anything.