Ways to save money when buying a house
We all dream of having our own house. It is somewhat considered a financial achievement of many.
Buying your own home is one of the biggest purchases you will ever have. So, it is important that you carefully plan it.
Already planning to buy your own house? We have provided several tips and tricks on how to save money when buying a house.
Hire a real estate agent
A good real estate agent will definitely help you save time and money. They are professional in home buying process and will aid you throughout the process.
You can ask referrals from your family and friends who already hired one before. This way, you can be sure of how the agent works.
Compare different loan quotes
The trick to save money on your mortgage is to compare different loan products and different lending companies. Do not settle for the first loan product you see. The interest rates vary from one lender to another. Plus, some lenders charge fees like loan origination fee and application fee while some companies don’t.
It is recommended to compare at least 3 to 4 lending companies. This way, you can see which one has the best mortgage loan deal. When comparing lenders, check the interest rates, minimum or maximum loanable amount, and payment terms. Furthermore, you can use online comparison website to help you find the best lenders in the market.
Get the right type of loan product
Not all loan products are created equal. So, it is important to carefully compare and shop around for the best housing loan deal. Ask for a help from your real estate agent to determine which one suits your financial needs.
Establish good credit score
One of the tricks to get a low interest rate housing loan is to have a good credit score. Many loan providers tend to look at the credit history of the loan borrower. How much the interest rate and loan fees are directly affected by your credit profile. The higher your credit score, the lower interest rate will be.
Some of the measures that you can do to increase your credit score are pay off credit card balances, do not miss a due date, and do not apply for multiple loan products at the same time, among others.
Save 20% of the down payment
It is wise a decision to save up for your down payment before you decided to purchase your dream home. You can create a budget and schedule
Saving up to 20% of the required down payment will enable you to only loan the needed amount. This helps you save money from repayment and interest rates.
Buying your first home should be planned carefully, from hiring an agent to choosing the best mortgage loan, especially if you are a first-time home buyer.