While purchasing a home is definitely one of the most monumental moments for any young professional, it can also be an extremely stressful decision. If you are like most soon-to-be-homeowners who are unable to purchase their home cash, you will most likely need to apply for a mortgage and pay off a large amount of debt over a significantly long period of time. For this reason, buying a home is often considered the ultimate responsibility as you will have to dedicate as many as 35 years to pay off your mortgage. This can make the decision seem overwhelming. However, there are several ways that you can save significantly when purchasing your first home and here’s how.
If you pre-qualify for a mortgage loan, it would be best to shop around and compare quotes before applying as you may find that some brokers are willing to offer you a reduced interest rate. Rivington Mortgages would be a great choice to consider, especially because they are quite renowned for their incredible customer service. While you are shopping around for the best deal, you should also compare aspects of brokers such as their level of customer service and search for any negative customer reviews as this will ultimately determine whether or not the brokers would be offering you what you need.
Once you have settled on the best deal, you can save yourself a lot of issues in the long run by assessing the contract terms. You should ensure that your contract contains a contingency clause as this clause will protect you in the unfortunate event that you are one day unable to repay your mortgage debt after losing your job. Should this happen, you will be able to reclaim the money that you have already put towards the loan when your home is sold.
Thorough Home Inspections
Searching for the perfect home can seem like an endless hunt, although, if you approach the task with the right expectations you will ultimately be able to save thousands on your first home purchase. When you are inspecting homes you should find a home that appears incredible at first, and be able to find several faults while inspecting. This will bring the purchase price down significantly as you will be able to reduce the asking price according to potential repair costs. However, it is best to avoid homes that require structural repairs as this would cost a fortune. A great method of getting the home inspection done would be to hire a home inspector that is skilled at finding faults to report to the seller of the home. This is one of the many reasons many home buyers opt for fixer-upper homes, as their asking prices can be lowered significantly and buyers are able to walk away with an impressive bargain deal.
Many first time buyers are completely unaware that they are able to negotiate the asking price of a property even if they have already reduced the cost with repair costs needed. You will be able to negotiate the asking price based on legal fees and other aspects of buying the home. You will need to determine your strategy for negotiating the price and base your reasoning on solid aspects rather than negotiate without an actual point. If you aren’t able to negotiate with a seller, you could always search for another property where you will be able to negotiate the asking price to save money.
Opt For A Fixer-Upper
Even though you may feel compelled to purchase a well-maintained home that won’t require any improvement projects, you won’t be able to save by purchasing such a home. When considering that you should be saving as much as possible for your retirement, purchasing a fixer-upper home that needs some work will be the best idea to keep your financial situation in check. This is because you will be able to drag your costs of repairs and improvements over longer periods of time to fit the costs perfectly into your budget. In addition to this, you will also be able to opt for the DIY route to save extra money along the way. Fixer-upper homes are a great choice for first-time buyers who are hoping to find a bargain buy. You will be able to take on home improvement projects that will provide the results of your dream home becoming a reality rather than purchasing someone else idea of a grand home.