HOW TO SAVE MONEY WHEN BUYING YOUR FIRST HOME
As a new homeowner, something I wish was available to me when I started my search was straight-to-the point information about saving money! When I googled “things to know when buying a home” or “first time homebuyers” I was flooded with information that made me more anxious and overwhelmed about the process.
I compiled what I find to be the top 5 important things to know when buying a home for the first time to save money.
Before jumping into the list, I want to remind you that regardless of the home buying stage you are in, timing is everything. The right house will come at the right time. Trust the process.
Search for FORECLOSED homes. I know this is not an option for everyone. Foreclosed homes require TLC (tender loving care) and you have to be mentally and physically ready for it but when it comes to saving, your pocket will thank you. Our house was foreclosed and we actually saved over $10,000. Yeah that’s right!
GET LOAN quotes from multiple lenders. Banks and lenders have different rates and looking at all your options can help you save money upfront but also reduce your mortgage payments. Don’t let the banks intimidate you and ask many questions. Feel free to let them know you are also looking into other banks. They can compete for you, YOU ARE THE CLIENT.
We were pre-approved by 3 different banks and received 3 different rates from each!
3. Invest in a thorough INSPECTION. This is not the time you hold back on your investment. Inspection is key when buying a home. By having a house thoroughly inspected you minimize the risk of having “costly surprises” when you move in saving you tons of money in the long run. We actually had our house inspected twice being that the home was foreclosed.
4. Put as much money as you can for your DOWNPAYMENT. Today you can put as much as 20% or as little as 3% down depending on your budget. However, the more money you put down, the more you can save on your monthly payments. Do not focus as much on the overall cost of the home. Focus on your downpayment and decide from there if you can afford the home.
(ex. Can I afford to put 10% down of this $400,00 home = $40,000 of downpayment.)
You do not want to end up in a home you thought you could afford but struggle monthly with all the payments. Reminder: Downpayment does not include inspection cost and other fees that you have to pay out of pocket.
5. CREDIT is Key. This one is a no brainer. The better your credit is, the better rates you will receive therefore the more money you will save in the entire process. You can have your credit as low as 650 to qualify for loans. However, ideally a credit of 700 and above will place you in a better position to receive better rates.
KEYWORDS: FORECLOSED,LOANS, INSPECTIONS, DOWPAYMENT AND CREDIT
These tips were personally the most helpful for me and I hope it can be of help to you as well!
If you would like a step by step of the home buying process let me know in comments below or any questions you may have. I would be more than happy to answer!
Let’s stay connected!
