How To Cut Costs When Buying A House
When you're buying a house, there are a lot of costs that can add up quickly. If you want to read more about budgeting, head out to Icoinvestments. Here are some tips on how to cut costs and still get the house you want.
Make a smaller down payment. If you can swing it, a 20% down payment is ideal. But if you can't, don't let that stop you from buying a house. You can still get a loan with a smaller down payment, you'll just have to pay Private Mortgage Insurance (PMI) until you've built up 20% equity in the home.
Get pre-approved for a mortgage. This will help you know how much house you can afford and avoid getting in over your head financially.
Shop around for the best mortgage rate. Don't just go with the first lender you speak to. Get quotes from a few different lenders to compare rates.
Get creative with your financing. If you have a relative or friend who's willing to help you out with a loan, consider getting a private loan or a home equity line of credit (HELOC) instead of a traditional mortgage. Just be sure to shop around for the best rates and terms.
Don't buy more house than you need. Just because you're pre-approved for a certain amount doesn't mean you have to spend that much. Stick to your budget and only buy as much house as you can afford.
Don't forget about closing costs. These can add up to several thousand dollars, so be sure to factor them into your budget.
Negotiate. If you're not happy with the price the seller is asking, don't be afraid to negotiate. It never hurts to ask for a lower price.
Get quotes from multiple contractors. If you're planning on making any renovations to the house, get quotes from multiple contractors before you make a decision.
Shop around for homeowners insurance. Don't just go with the first company you talk to. Get quotes from a few different companies to compare rates.
Don't buy unnecessary extras. When you're buying a house, there are a lot of things that are nice to have but that you don't necessarily need. Stick to your must-haves and save your money for things that are more important.
By following these tips, you can save a lot of money when you're buying a house. Just be sure to do your research and shop around to get the best deals.