Buying a house is a huge decision.
Although many people would like to own a home at some point, money can be an issue. Being a homeowner is cheaper than renting in the long-run, but buying a house is anything but cheap. Whatever property you buy, there are many costs to pay. What’s more, the process is complicated and takes quite long, which can create a very stressful situation. To make your home-ownership dreams less costly, here are six ways to save money.
Work On That Score
A poor credit score makes it unlikely that your mortgage loan application will be accepted. However, even if it is, the interest rate and lenders fees will be quite high. This means that you’ll have to pay out more when paying off the property. Because of this, you must improve your credit score. There are many steps you can take, but paying off existing debts is a good start.
Save A Large Deposit
Most people put down between five and twenty percent of the property value as a deposit. By offering up a larger sum, you can slash costs significantly. After all, paying more money now means that you’ll have less to pay later. This will keep you from being charged interest on top of the sum. What’s more, many lenders give better interest rates for larger down payments too.
Look Into Various Home
Before falling for any property, you should look into various houses. Choosing the right home to buy will make a cheaper buying process. Investing in house and land packages, for example, would leave you with less stamp duty to pay. This is because you would only have stamp duty for the land. A fixer-upper property would be cheaper too, because you’d have to renovate the home.
Get Multiple Loan Quotes
Once you’ve found your dream home, get loan quotes from multiple lenders. Different lenders charge various interest rates, along with other charges, like loan application fees. Make sure that you compare the costs of at least three different lenders before filling out an application. Even after being given a quote you’re happy with, you can negotiate with lenders for even lower costs.
House Hunt In Winter
With milder weather and fewer financial commitments, spring and summer are popular seasons for the housing market. The downside is that properties are typically more expensive during these months. Because of this, you should try to buy your home in winter. Although there are fewer properties up for sale at this time of year, those that are tend to be much cheaper.
Use An Estate Agent
Many first-time buyers avoid working with real estate agents when buying property. While you might assume that this would save you money, the opposite is more often true. The support and advice an estate agent can offer is truly invaluable. Even if you were charged for their services, which buyers typically aren’t, the money and time a real estate agent can save is worth it.
Buying property is an expensive process, but with the advice above, you can make it a cheaper one.
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