The process of buying a new home is stressful, even if you’ve already done it before. Looking at properties, researching areas, processing paperwork, etc., can all take a toll on your schedule and daily life. With all this going on, the last thing you should have to worry about is saving money when it actually comes time to buy the property. Use the following five tips for saving money on your next new home:
Always Use a Real Estate Agent
One of the biggest mistakes people make is trying to purchase a home without a licensed real estate agent. Not only can an agent help with paperwork, but they’ll also know how to negotiate the price using fair market value, the actual condition of the home and other various factors.
Try Not to Pay PMI
Also known as private mortgage insurance, this is tacked on to your monthly payment if you buy a home with less than 20 percent. Some lenders will still offer standard mortgages with smaller down payments, but they’re increasingly hard to find. Save money by trying to save at least 20 percent for your home, or purchase a home that fits into a slightly smaller budget.
Reduce Your Property Taxes
This is a very popular and often effective way to save money on a new home. If you think the assessed value of your home is too high, ask for a review. A different assessor will come out, perform an inspection and make any adjustments, if necessary. While this doesn’t always work, it’s worth a shot if you want to save as much money as possible.
Find Better Insurance Rates
Similar to auto insurance and health insurance, monthly property insurance premiums vary depending on the company that underwrites the policy. Spend time shopping around to different insurance companies until you find the one that offers an affordable rate that sufficiently covers your property.
Make Additional Monthly Payments
If your mortgage payment is low enough where you can consistently pay more each month, doing so could save you tens of thousands of dollars over the course of the mortgage and reduce the number of months you’ll need to pay.
There are a variety of methods consumers can use to save money, both upfront and during the course of their mortgage. To avoid financial issues in the future, always purchase a home that is within your set price range and never buy a home with zero money down; doing so will make it much harder for you to borrow against the property in the future.
By Kara Masterson