How to Save Money When Buying A Home
A home is arguably the most expensive thing that you will ever buy in your life. When you buy a home it is very important that you get the best deal possible at the best rate that they possibly can get. The first thing that you need to remember when you buy a home is to take a small of a loan out as you possibly can.
One of the largest asset destroyers is paying a bank an interest rate. On a typical 30 year mortgage, people often pay 3 times what the house is worth. Now that's what I call lining the pockets of bankers! You will want to be sure to pay cash, have a very short loan, or be absolutely certain that you can pay off a loan very early so that you will not be throwing away your hard earned money.
The next thing that you want to be sure to do is to check the property taxes and insurance rates in a given city & county. This can help you save money by selecting cities with very low tax rates.
Make sure to have the home inspected by a professional. The $100 you spend now can easily save you thousands of dollars in the future on repairs. Be sure when you make offers on a home, to keep your offers very low. Low ball offers can upset owners but they can also really save money if the offer is accepted. I often suggest people offer 70% of the asking price (especially in this economy) in order to save yourself a ton of money.
Many realtors frown on this practice, but often that's because it makes their job harder. At 70%, it gives you a lot of wiggle room for people to make counter offers at you. This wiggle room only equates to you saving money. Negotiate things that the seller must "assume" during the house contract. Note any repairs or take the repair prices out of the home value within your offer. Be sure to talk and negotiate as much as possible.
When a right offer is accepted for a home, be sure to jump on it. Keep in mind that many people get all funky about the asking price & house deal, but pay no attention or virtually no attention to the rate they are going to have to pay on a loan. Be sure to check online loan services that compare rates and can often get you a better deal than your local bank or credit union.
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