Buying a house can be a costly and time-consuming process. It is likely to be one of the largest purchases of your lifetime. There are some great ways to save money, however, you don’t want to cut corners on such an important purchase! In our latest post, we will tell you about ways to save money when buying a house in Boston!
There are many ways to save money when shopping for a house. By knowing what to expect and that you always have options, you can acquire some serious savings when buying your home.
5 Ways to Save Money When Buying a Home in Boston
1. Shop Around
Always shop around for a loan. There are several kinds of lenders so don’t settle for the first acceptable terms you come across. Instead, get loan quotes from at least three different lenders. Compare rates, terms, and what the penalties are if you miss a payment. Some lenders even offer incentives for timely payments.
The smallest differences in rate can mean thousands of dollars over time. While saving the 20% for a conventional loan might be daunting, by making a large down payment, you will need to finance less. Plus, with an FHA loan that only requires 3.5% down, you will need to pay additional fees each month for “mortgage insurance.”
You will want to add this to your mortgage, homeowners insurance, and taxes you will need to pay in order to get a real idea of what you will be paying each month. USDA loans are another great option to consider. These are available throughout most of the US. To qualify, you must be in a rural area, which is basically any place outside of a major metropolitan area. Run the numbers and find a loan that will be the most beneficial for you!
2. Buy in The Winter
Statistics show that home prices tend to drop in the winter time. There are a few likely reasons for this. Depending on the climate, cold weather will deter many people from moving. Also, families will usually avoid disrupting their kid’s school year if possible. Sometimes, interest rates will also drop. With fewer people buying, lenders will cut their rates to gain a competitive edge.
3. Buy An Ugly House
Not necessarily a fixer-upper, but one that may be overlooked because of its bright orange carpet. Unattractive homes will often sit on the market longer, causing the owners to drop the price.
So long as there is no structural damage, you can often times find a great deal on a house that simply needs a little work. When purchasing any home, always do your homework and have an inspection done. It is not worth it to buy a discounted house if there is major structural damage.
4. Get Your Credit in Tip-Top Shape
Before you start thinking about houses or loans, you should take some time to get your credit in order. Request your credit report from the credit bureaus and take care of any negative marks that you can. Some lenders like to see 2 open credit lines, which help to show you are the kind of person who doesn’t back out of their debts. By improving a few things your credit score can rise dramatically.
5. Plan Ahead
If you want to buy a house, the time to start saving is NOW. Even if homeownership is a ways down the road, by slowly putting money away, you will be much better prepared for your purchase.
As mentioned above, the larger your down payment, the less you will need to finance. This means less you will be paying the banks in interest.
Plus, when you move, there are other expenses you will likely encounter. You might need to furniture, home items, moving supplies, movers and more. By having funds set aside, you won’t feel the strain as much.