What can you do to save some cash on your home purchase?
As a home buyer, you know that your purchase will come with some out-of-pocket costs. Even if you’re taking advantage of a zero down loan, there are
still associated costs before you can get into your home.
So what can you do to insure you’re not paying more than you have to in order to close escrow? Here are a few suggestions.
First and foremost, do your best to have the best credit score possible.
The better your credit, the better your chances of qualifying for a loan with a lower interest rate, which will save you a lot of money on your monthly mortgage payment, as well as the overall cost of your loan.
Shop for the best loan.
Yes, you can shop and compare lenders and their loan costs. You may be surprised at the variance in loan prices from lender to lender. Don’t be afraid to ask your mortgage loan officer for the best deal possible. Don’t overlook options that may include a lower down payment, keeping more cash in your pocket.
Understand the comps, and make your offer accordingly.
It’s really important that before making your offer on a property, that you truly understand the fair market value of homes in the area. There may be deals out there based on how long a property has been on the market, but you want to go in with an educated offer, and not just a random lowball price. You’ll be taken much more seriously by a seller if your offer makes sense from a fair market perspective.
Cash back at closing?
One of the most important reasons a buyer should hire a professional home inspector is that he/she can find issues that may not be easily seen. In some cases, a seller may not even know their home has issues that may affect its sale.
Other situations may just include outdated cosmetic issues such as old carpet/flooring, paint, or other deferred maintenance. It doesn’t hurt to either ask the seller to take care of these issues before escrow closes, or ask for cash back at closing to allow you to make your own updates and repairs.
Ask the seller to pay for a home warranty.
A home warranty provides a lot of protection for your property. From appliances to other issues that can affect the home, a warranty can save you a lot of headaches, as well as a LOT of money. Asking the seller to cover the cost of a warranty during the negotiation process can save you at least $400.
Learn more techniques that will help you save money on your home purchase.
Contact The Lichen-Hooper Real Estate Team for the best advice and solutions to your real estate goals.