Buying a house is a big and exciting step of your adult life, but that doesn’t make it any less expensive. No matter the location or type of property, your home is going to cost you tens, if not hundreds, of thousands of dollars, so it’s important to keep costs down where you can. If you don’t have an unlimited source of cash to spend on a house, then here are three ways that you can help yourself save money when buying one.
Write A Budget
Lot’s of people decide that they want to buy a house, but don’t put much thought into the house much money they have to spend, and what they need to spend their money on. You need to write a list of all of your current expenses (deducting one’s that you won’t have to pay for your new house), as well as any extra expenses that you will have to pay once you become a homeowner. For example, some properties, such as townhouses, require you to pay homeowners’ association fees each month, which is something else to consider. You should deduct this total from your monthly income, and whatever’s left is what you can afford to for monthly mortgage payments. Visit investopedia.com for more advice on how to budget for buying a home.
Shop Around & Haggle
You have no chance of getting the best deals on mortgages and properties if you just pick the first property or lender that you come across. You need to shop around online, in estate agents, and in newspapers and compare the costs of your favorite properties. Luckily, there are plenty of websites online, such as mortgageloans.co which compare the rates and fees of top-rated lenders for you, to save you any extra hassle. Once you’ve chosen a property you like, be sure to never agree to pay the asking price straight away. Instead, find out if the property has had any other offers. If it hasn’t, then you are safe to offer a lower price and haggle with the homeowner.
Consider A Fixer-Upper
Lot’s of property owners are now choosing to purchase more run-down homes, as a way to save money, and then doing them up. Often, if a property has any damage and needs some repairs, owners are much more willing to accept relatively low offers, just to get the property off their hands. However, there are some issues that you can’t ignore. If the property has a lot of structural damage, such as to the roof, then this is likely to cost you a lot more to repair than what you’re saving on the property. Be sure to hire a surveyor to look at the house, and work out its true value. If the damage is only cosmetic, then it shouldn’t cost you too much to repair it, and you are safe to make an offer.
Buying a property is certainly expensive, but if you do your planning and research, there are many easy ways to save some cash here and there.