How To: Save Money When Buying a Home

Buying a home can be an expensive process, but if you shop wisely and arrive at the closing prepared, there are ways that you can save. We’ve put together a list of things that can help ensure you’re getting the best rate on your loan as well as save money on closing costs and other expenses. 

Use an Experienced Agent 

Many first-time homebuyers will underestimate the power of working with an experienced real estate agent because they want to avoid paying the commission fees. However, opting out of using an agent can often cost a buyer more in the end than a 6% commission. Not only will an experienced agent be able to guide you through the local neighborhoods and find your ideal home, based on your criteria they’ll also be able to negotiate items in your contract to protect you and save you money. 

Get Multiple Quotes

Interest rates will vary from each lender, so we recommend shopping around for a loan and comparing the rates of 3-4 mortgages. Not only will this ensure you’re getting the best rate, but it will also give you the opportunity to speak with several different lenders to learn more about the process and where your money is going. 

Save a 20% Downpayment

It’s best to have a 20% downpayment saved before beginning to search for a home. Not only can this help keep interest rates low, it will also prevent you from paying sometimes thousands in mortgage insurance fees. 

Boost Your Credit Score

Your credit score has a significant impact on the types of loans you can be approved for as well as your interest rate. Before you begin your home search, make an effort to increase your credit score by paying off debts or closing outstanding accounts. This may postpone your home purchase but could save you thousands of dollars in interest payments. 

Looking to buy or sell? Call Roxan Coffman Properties today to find your next dream home.