You want to buy a home. With a growing family, renting a property no longer seems the way to go. You want to buy a home for you and your family to have a comfort zone. A place that creates wonderful family memories. The good news is that there are several ways to reduce the cost and end the need for renting.
Increase the Down Payment
A mortgage is no different from any other loan. The more you put down the less you’ll pay each month. This could save you tens of thousands over the course of 30 years. That is a massive step to living debt free. However, for many, coming up with the 20 percent that banks prefer, isn’t doable. For example, for a home that’s $200,000.00, you would need $40,000.00 down. Otherwise, you’ll have to pay PMI insurance which can add another hundred or more to the monthly payment.
A Higher Credit Score
If you want to ensure that you have access to the lowest mortgage interest rates, you need an excellent credit score. If your credit score is currently fair to good, you should work hard at raising your score prior to starting your search for a home. Reducing your debt and lowering your credit card balances to less than 30 percent will help you improve your credit score by 20 to 30 points in a matter of months. Taking out an installment loan by searching online for loan companies, (for example, make sure you use your own local qualifier so you can get the most relevant search results) is another way to consolidate your debt.
Consider an Older Home
While it may be your dream to have a brand-new home, the costs associated with it may put it out of reach. Instead, take a look at a number of pre-existing homes. In many cases, the seller will do repairs and remodels prior to listing, to make it attractive to buyers and experience a quick sale. If you come across a unique fixer-upper and you don’t mind investing your time, you can potentially save tens of thousands versus one ready to move into.
Know Your Price Range
While knowing the price range you can afford won’t save you any money, it will save you time and grief when you see a home that you want, only to find out you can’t afford it. Once you’re ready to start seriously looking for a home, see a lender and get a pre-approval. It’s also beneficial to remain below the maximum amount you can borrow. This will give you added room in your budget to add personal touches. If you need additional income per month consider debt consolidation to reduce your monthly expenses.
The Benefits of a Realtor
A Realtor is something that every buyer should have in their corner. In addition to knowing the area, they know if the market price is out of range for the location and what to look for in a home to lower the asking price. Older carpets, hardwood floors, outdated plumbing, roofing, and electrical are all things that can work in your favor. In many cases, they can also sway the seller to absorb the closing fees to make the sale.
Buying a home can cost less than you may imagine. Finding a realtor, putting more down and shopping around for the best price are all ways to help you join the millions who enjoy homeownership.
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