Buying a new home can be a fun, exciting time. There is nothing more fun than house shopping, whittling through new neighborhoods, discovering new homes and all the features included.Finding that perfect house, and then finding out how much you actually have to spend on your new house purchase. That doesn’t mean you can’t save a bit of money when buying a new home. Here are a few tips for budget cutting on a new home purchase.
One of the first, and easiest ways to save money when buying a home is by looking at the home itself. Do you really need a three bedroom? Is that big, extra bathroom really required, or would maybe a smaller home be more preferable? Buying a house means going with what you need. Most people get into the issue as, well you can never have too much space, but that’s not the case. The space has to be kept up, cared for, heated and cooled, etc. A big house with many rooms may look and sound good now, but if you don’t really need it then cut it off the list. Downsizing is not a bad thing, as more and more buyers are looking for just that.
When buying, the PMI, which is private mortgage insurance, can cost a fortune. It runs anywhere between .5% to 1% of the loan itself. That is expensive. A good way to cut out the PMI is coming up with the 20% down on a new house purchase. Downsizing may make this possible. Understanding all parts of the mortgage, including insurance, is always a smart idea.
Another very simple way to help keep buying a new home costs in check is to make sure you pay attention to what the home inspection reveals. There’s nothing worse than buying your dream house and coming home to realize after 6 months there are major problems with a house. Some house fixes can run in the thousands of dollars, and most have to be paid for flat out. A new roof can be a steep bill, so watching out for these hidden costs are always a good idea.
Buying a home should be a carefree, fun time, but that doesn’t mean that you can’t save a few dollars here and there. By making sure a home has just what you need and not many extras, watching your mortgage rates and PMI, and the home inspection can all be simple ways to cut the cost of buying a home.