How To Save Money On Your Home Purchase

If you’re thinking about buying a new home, you should probably think about finding the best deal possible. However, there are many other ways of saving money, apart from getting a great deal. Keep reading to find out how to save money on your home purchase!

  • Find the Most Experienced Real Estate Agent in your Area

Hiring a good Real Estate Agent will help you tremendously. They will save you a lot of time and money, as well as a lot of stress. You will need their experience and advice for the process of buying a house. Also, they probably know a lot more about real estate contracts than you. Their help will be essential for a smooth home purchase. If you are relocating out of Crown Heights for example, you will be in luck! There is a very large number of great Real Estate Agencies which will provide you with the best possible service.

Most people who are buying a house for the first time make the mistake of thinking that hiring a Realtor is a waste of money. However, this will do you more harm in the end. This is because you, as the buyer, actually do not pay for the Realtor’s services. The commission is paid by the seller! Look for a realtor with the best characteristic trait for his profession and they will surely explain everything.

Moreover, most sellers expect that you will come with a Realtor, and they usually prefer it that way. Since you probably don’t have a lot of experience in reading and analyzing contracts, a Realtor will be helpful! They will know how to negotiate in your advantage for numerous things you might not even notice in the contract. This will only be a plus for you since they will save you money that you didn’t even think would be possible to save!

The best way of finding a good Real Estate Agent in your area is to get referrals from friends or family. Also, you can research online, on sites like and read reviews from previous home buyers. This will definitely be of great help!

1 Get a refferal from a friend!

  • Figure out Your Budget in advance

Before you start the process of buying a new home and relocating, you have to calculate your moving budget well in advance. If you realize that you might not have as high of a budget as you need, think about getting a loan. More specifically, the best option would be to get loans from a few different lenders.

Since interest rates usually vary depending on the lender, it is highly recommended to look into no less than 3-4 mortgage companies. Be on the lookout for numerous fees the companies might want to charge you with. For example, there are different fees for applying for a mortgage and for processing a mortgage. There is also an option for getting a short-term loan, so don’t forget to look into that as an option. However, all of this should be in the loan estimate so read it very thoroughly!

Moreover, doing this will help you use these loan quotes when negotiating for the lowering of fees. Also, you will get to meet many different loan officers. In this way, you will be able to find the ones you are the most confident and comfortable with.

  • Save 20% for the Down Payment and Deposit

Having 20% of the price for the down payment is very important. Unless you are ready to pay this amount you will most likely be charged with mortgage insurance as well. This is private mortgage insurance or PMI for short. Furthermore, this is insurance for the actual mortgage loan.

Usually, the Federal Housing Administration (FHA) loans require insurance of the mortgage even if you have enough money for down payment. The biggest flaw of these kinds of loans is that they require mortgage insurance for however long the loan is active for. However, most people change the FHA loan to a more conventional loan. This is done usually after their loan-to-value (LTV) ratio drops below 78%. If you’re not familiar with LTV – it is an assessment of whether or not the lending companies will approve of your loan.

  • Research what kind of Loan is Best for you

There is a bunch of different loans which you might not even know about. For example, there are loans specifically for veterans; there is a USDA loan and a loan created by the Department of Agriculture. The most important part is that some of these loans don’t require a down payment! Also, their mortgage insurances are usually significantly lower than in other loans. If you are able to apply to some of these loans, you might save yourself quite a lot of money.

  • Try to raise your credit score

It is quite simple – your loan will be cheaper if your credit score is higher. Therefore, keep your finances in check and refrain from bigger purchases if you’re planning on buying a house. For example, if you know you’ll have to apply for a mortgage soon, wait a little while longer before buying a new car or credit card.

  • The Best Houses are the ones that Need a little Work

In an ideal world, you can look for your dream house that doesn’t need any additional work. However, these types of homes usually cost much more than a house that needs some work. This is because they usually have many additional features and custom built furniture and appliances. Therefore, your best bet is to look for a home that will need some love. This is also a great way to save a lot of money. You will be able to do most of the housework yourself, like adjusting your own custom fixtures. Also, if you have some time, you can paint the walls yourself and add your own personal touch to the place! This will also make it feel more like a home since you will be putting effort into making it perfect for you.

2 Add your own personal touch!

However, there are some things that you will definitely have to hire a professional for. In example, there are a number of reasons why you should hire an expert for pest control. This is just an issue that you won’t be able to resolve on your own!

  • Costs of Housing drops during the Winter

The housing market is usually highly dependent on the time of the year. The highest pricing demands are typical in the Spring and Summer months. This is because most people want to relocate to their brand new home in the nicer and warmer weather. Looking into buying a house during the Winter months might be a good option if you’re on a tight budget or if you just wish to spend less!

3 Consider the Winter time for a home purchase!