5 Tips for Saving Money On Your Next New Home

Posted on Sep 30 2016 - 12:08pm by Housecall

By Kara Masterson

moneyThe process of buying a new home is stressful, even if you've already done it before. Looking at properties, researching areas, processing paperwork, etc., can all take a toll on your schedule and daily life. With all this going on, the last thing you should have to worry about is saving money when it actually comes time to buy the property. Use the following five tips for saving money on your next new home:

Always Use a Real Estate Agent

One of the biggest mistakes people make is trying to purchase a home without a licensed real estate agent. Places like Lisa Burridge & Associates Real Estate can be of immense help during the purchase process. Not only can an agent help with paperwork, but they'll also know how to negotiate the price using fair market value, the actual condition of the home and other various factors.

Try Not to Pay PMI

Also known as private mortgage insurance, this is tacked on to your monthly payment if you buy a home with less than 20 percent. Some lenders will still offer standard mortgages with smaller down payments, but they're increasingly hard to find. Save money by trying to save at least 20 percent for your home, or purchase a home that fits into a slightly smaller budget.

Reduce your Property Taxes

This is a very popular and often effective way to save money on a new home. If you think the assessed value of your home is too high, ask for a review. A different assessor will come out, perform an inspection and make any adjustments, if necessary. While this doesn't always work, it's worth a shot if you want to save as much money as possible.

Find Better Insurance Rates

Similar to auto insurance and health insurance, monthly property insurance premiums vary depending on the company that underwrites the policy. Spend time shopping around to different insurance companies until you find the one that offers an affordable rate that sufficiently covers your property.

Make Additional Monthly Payments

If your mortgage payment is low enough where you can consistently pay more each month, doing so could save you tens of thousands of dollars over the course of the mortgage and reduce the number of months you'll need to pay.

There are a variety of methods consumers can use to save money, both upfront and during the course of their mortgage. To avoid financial issues in the future, always purchase a home that is within your set price range and never buy a home with zero money down; doing so will make it much harder for you to borrow against the property in the future.

2 Comments so far. Feel free to join this conversation.

  1. Camelia Vera SoCal Realtor, Bilingual September 30, 2016 at 6:48 pm -

    Another tip: After you buy your home, consistently keep an eye on mortgage rates and if they drop, call lenders to see if you can refinance. This locks you in at a lower rate. To save even MORE, after you refinance to a lower rate and monthly payment, keep paying the monthly payment you previously had. You aren’t obligated to but it does decrease the total amount you owe and possibly pay off your loan faster.

  2. Kurt October 5, 2016 at 4:13 pm -

    ALWAYS SHOP LENDERS. Your agent can recommend several good local lenders that have access to local and state programs that may benefit you in saving money and reducing fees and costs associated with obtaining a mortgage.