Seven Ways to Save Money When Buying a House Today
Seven ways to save money when buying a house today. So you are wanting to buy a new home and want to get the best deal possible. Besides getting a good deal on a house, there are many other things that can save you money. In this article, we are going to look at the different ways to save money when buying a house in Dallas, Texas.
Get Approved for a Mortgage Loan
Use an experienced local mortgage broker. A good mortgage broker will save you a lot of time, money and heartache. They’re experience in the home buying process and real estate contact expertise is very important for getting the best deal on a home and ensuring the process goes smoothly. While some first-time buyers may try to save some money by not using a real estate agent, this sometimes hurts more than it helps. Seven ways to save money when buying a house today.
In fact, yo as the buyer do not pay the commission to the realtor, the seller does. A buyers agent commission is figured into the contract, sellers expect any buyers to have their own agent. A real estate agent will be able to negotiate various things in the contract to protect you and save you money, you may never even heard of. Most people don’t know, that your agent is supposed to do this anyway, and sometimes does not. You can get referrals to good local agents from friends and family, or by using sites like Trulia and Zillow. Keep in mind, while using these websites, neither are good for comparables.
Second, get loan quotes from Multiple Lenders, Interest rates will vary from lender to lender so it is recommended that you get loan quotes from at least 3 to 4 different mortgage companies. Lenders charge various other fees for processing a mortgage, loan origination fee, loan application fee, etc. In the loan estimate, you will be able to clearly see the fees charged. Not only can you use these loan quotes to help you negotiate lower fees and rates. But they give you a chance to speak with different loan officers to see who you are the most comfortable with. Rate Search!
Get Current Mortgage Rates
Third, have 20 percent saved for the down payment. Unless you are coming to the table with a 20 percent down payment you are going to be stuck paying for mortgage insurance. Private mortgage insurance (PMI) us insurance on the mortgage loan itself. If a borrower defaults on the loan, the lender is reimbursed for the funds lost. FHA loans will require mortgage insurance regardless of the amount of your down payment. One of the drawbacks of FHA loans is that mortgage insurance is usually required for the life of the loan. Many people will refinance out of an FHA loan product into a conventional one, once their LTV ratio is below 78 percent. Seven ways to save money when buying a house today.
Four, increase your credit score. The higher your credit score, the cheaper your loan will be. Lender fees and interest rates are tied directly to your credit rating. There are a few simple things you can do to improve your credit score quickly before applying for a mortgage loan. Pay down your credit card balances. The balance on your credit cards vs the credit limit is called utilization ratio. This ratio accounts for 30 percent of your overall FICO score, only your payment history (35 percent) has a higher impact on your credit rating.
It is recommended to keep your balances below 15 percent of your credit limits to maximize your credit score. Do not apply for new loans or credit new accounts your credit score will take an initial drop for a couple of months. When you know you are going to be applying for a mortgage in the near future, it is best to hold off on buying that new car or credit card.
Number fiver, find a house that needs some work. You are probably looking for a home that is going to sweep you off your feet and does not need any work. The problem is, so is everybody else. Homes that have lots of upgrades and custom features will cost much more than a home that needs some love and happiness. Finding that diamond in the rough can be a great way to save a bunch of money. Adding custom fixtures and lighting is relatively easy to do. Painting walls and adding your own personal touch can be very rewarding while saving you cash.
Seven Ways to Save Money When Buying a House Today
Six, get the right type of mortgage loan. Depending on your situation, some loan programs are better than others. For instance,Veterans can qualify for a VA loan and not have to put any money down or pay mortgage insurance. If you are not buying a home inside a major metropolitan area, then you may qualify for a USDA loan. The Department of Agriculture created USDA home loans to help low-to-median income buyers become home owners in rural parts of the country. Not only do these mortgage loans not require a down payment, but mortgage insurance on USDA loans is much lower than other types of loans at just 0.35 percent of the loan amount. This could save you hundreds, of not thousands of dollars annually.
Finally number seven. Purchase a home in the winter time of the year can also dictate the housing market. Spring and summer months often demand the highest prices, because this is when most consumers are in the market to purchase. Waiting to buy a home in the winter months can save you as much as $20,000 according to NerdWallet.