*This is a collaborative post.
Buying a home is an exciting experience but it can be extremely stressful. The expenses seem to mount up. But that doesn’t mean you can’t save money when buying a house. When it comes to buying a home, knowledge is power. Do your research so you understand all the expenses that come with buying a house, especially if you’re a first-timer buyer. You can also take a look at the following clever ways to save money when buying a house.
Invest in a house survey
A house survey may seem expensive but having one done could you save thousands should any issues be found. If there is a problem with the house, you could use it to negotiate with the seller and bring the overall price down. It could also help avoid any unexpected surprises further down the line.
Buy a more affordable home
You could save a lot of money by buying a home for less than you can afford instead of opting for one nearer the top end of your budget. Think carefully about the type of house that would meet your needs and how much space you really require. Do you need that extra bedroom? Could you choose an older property and renovate it rather than pay a premium for a new build? Instead of a garage would a car port suffice? You could even add one using polycarbonate sheets.
Buying a more affordable home should allow you to put down a bigger deposit and lower your ‘Loan to Value’ or ‘LTV’. The lower your LTV, the lower the interest rate you are likely to be offered as the lender is taking on less risk.
Downsize
Do you already own a home? Another great way to save money when buying a house is to downsize and sell your current home before buying a smaller one. This strategy helps you reduce costs and your mortgage repayments.
Improve your credit score
Your credit score has a significant impact on the interest rates offered to you by lenders. For instance, a low credit score is likely to increase the interest rates available to you when you are looking for home financing. Therefore, it is always wise to take time to improve your credit score before you buy a house.
Buy during off-peak months
The property market has its ups and downs. So, there are seasons when house prices are high and seasons where they are lower. Many buyers look for homes during the spring, making March to May some of the most expensive months. You could save money by buying a house during the winter months. That’s if you’re prepared to deal with the slower pace of the property market on the lead up to the festive season.
Final thoughts
Buying a house is one of the biggest investments you can make. However, there are things you can do to keep costs down. As well as the above tips you can save money when moving or make extra money to help cover some of the expenses.