Buying a home is a big investment, but is generally one that is seen as being well worth the cost. However, there are still things that you can do to save money when purchasing a home. Here are three ways that you can do this.
Don't Be Afraid Of A Fixer Upper
A lot of the time people run in fear from a home that needs a bit of work because they don't know if they are up for the task. However, if you are handy, or if you know someone who is handy, a home like this may be exactly what you are looking for. A home of this nature is perfect as a fixer upper because it has so much potential. The more that you fix and update, the more your home will be worth. This will help you to make a great profit when you sell your home, which is great for putting down money on another one.
Bid Below Asking Price
Another excellent way to save money on your potential home is to bid below asking price. A lot of the time the asking price may be more than the home is worth anyway, so it isn't a bad thing to bid lower. Also, if the seller doesn't like your bid, they can always counter-offer, which is generally still below asking price. Even if they counter offer with full price, but offer to pay closing costs, this can still allow you to save a few thousand dollars, if not more.
Have A Good Down Payment
Before you ever start looking at homes, you should have some money set aside for a down payment. Not only do most homes require that you have some sort of down payment, but this can also help you to save money in the long run. The more money you put down up front, the lower your mortgage payments will be. Also, if you put enough down to where you can afford to go with a 15 year loan, then more of the money you pay each month will go towards the loan instead of going towards interest. The thought of having lower payments and paying off your home faster is a win-win situation.
When buying a home, you can save money by purchasing a fixer upper, bidding below asking price, and putting a good chunk of money down for a down payment.