By Wayne Jordan
Are you in the market for your very first home? If so, congratulations! Buying a home is an exciting milestone in anyone’s life. However, it can also be a bit daunting, especially if you’re on a tight budget. Don’t worry, this blog post will share five money-saving tips that will help you get into your dream home without breaking the bank.
Tip 1: Consider a fixer-upper
If you’re on a tight budget, consider buying a fixer-upper. Often, these homes are priced significantly lower than other properties in your area, which gives you more room to work with in terms of your budget. Plus, fixing up a home is a great way to learn about home ownership and add some personal touches to your new space.
Tip 2: Shop around for the best mortgage rate
When you’re buying a home, it’s important to shop around for the best mortgage rate. This will help you save money in the long run and reduce your overall borrowing costs. Talk to a few different lenders and compare rates before you make a decision. A fixed-rate mortgage will protect you from interest rate hikes down the road, and they tend to be much easier for first-time buyers to understand and vary little from lender to lender.
Tip 3: Get pre-approved for a mortgage
It’s important to get pre-approved for a mortgage before you start shopping for a home, so you will need to think about the financing upfront. This will give you an idea of how much money you can borrow and help you narrow down your search criteria. However, just because you can borrow say, $300,000, does not mean you should. Choosing a smaller and less expensive home will help you save money on things like property taxes and heating costs.
Tip 4: Consider buying a duplex or triplex
If you’re looking for ways to save money on housing, consider buying a duplex or triplex. These types of properties often offer lower monthly payments than traditional single-family homes. And, if you live in one unit and rent out the other unit(s), you can make a nice profit.
Tip 5: Be mindful of closing costs
Closing costs can add up, so ask your real estate agent about any potential discounts or rebates available. You can always ask the seller to contribute to your share of closing costs, which will show as “seller credits” on the loan estimate form. If you don’t have the cash available to pay closing costs, a no-closing-cost option may be an alternative if your lender offers it. This saves you the trouble of having to come up with the money upfront at closing. However, it ultimately will cost you more in the long run because your lender will absorb the closing costs in a higher interest rate.
Hopefully, these tips help you save money when buying your first home. And, once you’re settled in, be creative! There are lots of affordable ways to add some personality to your space without breaking the bank. For example, you could use temporary wallpaper, thriftstore and eBay finds, or even DIY projects. YouTube videos are a great way to learn new skills, and taking care of your own tiling, shelving, and carpentry can save you a lot of money. We are happy to help and share our insight and experience to help you your homebuying process. Schedule an appointment today, call us at 888-670- 6791.
Wayne Jordan is a real estate agent at Equity Smart Realty Inc.