Buying your first home is perhaps the most exciting experience you may ever have in your lifetime. It gets you a step closer to your dream and signifies a great financial achievement. But it involves a massive investment, and being money-savvy can help you save a lot. After all, you will have probably reached this stage with diligent efforts and a lifetime of savings. While there isn’t a real estate rulebook you can follow, some money-saving tricks can help you economize your first deal. Here are the ones you can try.
Buy in the offseason
The best piece of advice for a first-time buyer is to go shopping in the off-season. The demand tends to be low during the early months of the year. You have less competition from other buyers, so it will be easier to secure a good deal. Apart from the seasonal fluctuations in the real estate landscape, you must follow the current trends in your area. When demand is low, prices will fall, and you can go ahead to seal a deal.
Be open to multiple options
Most newbies have specific requirements in mind when they start exploring the real estate deals around. You may have a particular location, a precise size, or a trending design in mind, but rigidity often makes you pay more. Conversely, you can save a fortune by being flexible and open to multiple options. Consider buying an old home and renovating it because you can save a fortune and give it a dream makeover just the way you want.
Collaborate with an expert
As a beginner, you can easily make mistakes while assessing offers and getting the best deals. It makes sense to collaborate with an expert realtor who knows the market well enough and has the best negotiating skills. Besides securing money-saving benefits for you, these professionals can also help you save time. Let them know your expectations and budget, and they will show only the best fits. They can even help you save expenses by writing in contingencies for the appraisal and inspection.
Improve your credit score
Surprisingly, an excellent credit score can help you save on home buying. You can get a better deal on your mortgage if your credit score is on the higher end. Lenders see you as a safe prospect as a high credit score indicates the probability of paying back the loan on time. You will have to pay a lower rate of interest, which will effectively reduce the cost of the house in the long run.
Piece together a bigger down payment
It may sound counterintuitive, but having a larger down payment in your pocket can actually economize the deal for you. It will lower your mortgage rate and reduce your debt amount. You will end up paying a smaller amount for the property over the years. Target at least a 20% down payment, while you may pay even more upfront if possible. Look for a lender who can give up on private mortgage insurance (PMI).
Saving up on your first real estate deal seems like a challenge, but it is easier than you imagine. Follow these money-saving tricks, and you are good to go.
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