5 Ways to Make a New Home Less Expensive
Buying a home is one of the biggest purchases you will ever make. Consequently, you should never rush into homeownership without making a careful plan. Additionally, you’ll want to think about how much you can actually afford to spend on a home — both now and over the long term. So, in today’s guide, we’re going to take a closer look at 5 ways to make a new home less expensive.
Reduce Your Moving Costs
If you’ve already purchased a home or you know where you want to live, you’ll still need to think about the cost of moving in. Even when you’re just moving down the street, the time and cost of getting all of your stuff from Point A to Point B can add up quickly. While moving companies can help you save a lot of time, they do not all offer competitive prices. So, make sure to find a quality moving company like Black Tie Moving to help save you time and money.
Work On Your Finances Before You Apply
Applying for a mortgage requires you to meet certain prerequisites when it comes to your income, credit score, and debt-to-income ratio (just to name a few). If your finances are not great now, you may want to consider improving them before you actually apply for a mortgage. Even just increasing your credit score by a few points or reducing your existing debts a little could help you save thousands of dollars on your next mortgage.
Shop Around For Good Lenders
With mortgages, you should never just take the first deal presented to you. There’s a good chance that a lender out there can offer you a better deal. Don’t be afraid to shop around and find the best offer on the table. Additionally, consider government-backed loans that can help you qualify for better interest rates and lower upfront costs.
Focus On Your Down Payment
Your down payment is a very important part of the home-buying process. Most private sector loans will require you to make a down payment, with the industry standard being roughly 20% of the value of your loan. You’ll need to decide what works best for you and how you want to reduce the cost of your home in relation to the down payment. For example, if you don’t have a lot of cash on hand right now, you’ll want to negotiate a smaller down payment or find a lender that will offer you fewer upfront costs. Alternatively, if you want to save more on interest and the long-term costs of the loan, you should consider paying more than the minimum down payment.
Consider a Fixer-Upper
A fixer-upper is always a risky choice, but it could end up saving you a lot of money and even greatly increasing your ability to profit from the resale of your home. When you buy a fixer-upper, you generally spend much less on the basic cost of the home. However, you’ll likely need to put thousands of dollars into repairs. So, evaluate the risks and rewards of getting a fixer-upper to determine if it’s the best choice for you.
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