Buying your first home is an unforgettable experience. You’re starting a new chapter in your life, and you deserve to be excited! But with so many things to take care of, it’s normal for first time home buyers to be confused about hidden costs and fees that may arise. Before you commit to buying your first home, consider using some of these tips to help you get the best value for your investment, and save money.
How to Save Money When Buying Your First Home
If you’re planning on buying a new home for your first time, you’ll want to get prepared well in advance to make sure you get the best deal possible. Below are six simple steps you can prepare to make things easier on your future self:
1. Fix Your Credit First
Your credit score will be the most significant factor in determining your mortgage rate, so try to raise your credit as much as possible before applying for your mortgage. Making your payments on time, paying off your credit card debt, and maintaining a low debt to credit ratio will help you maximize your credit score to save money on your mortgage rate.
2. Save for Your Down Payment
Make a budget and stick to it so that you can save as much as possible for your down payment. Paying more upfront will lower your monthly payments and save you a decent chunk of money over time.
3. Shop for the Best Mortgage Rate
When you take the time to research different mortgage lenders and find the best rate, you can potentially save a fortune in interest costs throughout your loan period. Other creditors will offer you different rates, so shopping around for the best rate is more than worth your time. You can also negotiate your rate with your lender to try and get a better deal.
4. Negotiate the Listing Price
Once you’ve found the perfect house for you, it may be tempting to match the listing price and try to close the sale as soon as possible. But with such a significant investment, you’ll want to do your due diligence first.
Research housing prices in your area, speak with your real estate agent and shop around for similar houses nearby. You might be able to shave a substantial amount of money off your listing price if you’re willing and able to negotiate appropriately.
5. Carefully Review Your Closing Statement
Be sure not to overlook any errors in your closing documents. If possible, look everything over with a professional so that you don’t miss anything. Mistakes happen, but it’s much better to catch them before signing your contract and making it official.
Enjoy Your First Time Home Buyers Journey!
Don’t forget to have fun while you’re shopping for your first home. It’s a massive milestone in anyone’s life, so try and appreciate the experience. Pretty soon, you’ll be kicking back in your new dream home, starting your new dream life. Enjoy!
Start your first time home buyers journey today with our FREE Home Buyer’s Guide e-book today!