When you are buying your first home or your next home, saving as much money as you can is ideal. Everyone likes a good deal. There are several ways in which you can save money. Below we will discuss a handful of these saving:
Use an Experienced Local Real Estate Agent.
- A local Realtor can find you the right deals, they know the market. A Realtor is also experienced in negotiations. They can suggest a good price and negotiate to get you a lower than asked accepted offer.
- Professionals in any business usually can find ways of saving their customers money.
- Ask your Realtor if they know other service providers you will need that provide quality service for reduced fees – like inspectors.
Get Loan Quotes from Multiple Lenders.
- Lenders all have different fees that they charge to process a loan. You can use these quotes to negotiate with the one you like to get them to provide the loan for a reduced fee. If they say they are going to lose money if they reduce their fees, move on to the next lender. There are many lenders who work hard and want more business.
Get insurance Quotes from Multiple companies.
- Each insurance company has different programs and rating systems when offering insurance. Compare them and use each quote against the other insurance company to get the best coverage for the lowest price.
- Call the same company you may have car or other insurance with. They may have bundle insurance savings.
Have 20% Saved for the Down Payment.
- This one saves you on your monthly interest and eliminates PMI giving you 2 savings.
- PMI, also known as private mortgage insurance, is a lender’s protection in the event that you default on your primary mortgage and the home goes into foreclosure.
Increase Your Credit Score.
- The better (or higher) your credit score is, the better your interest rate typically is. There are several other factors that come in to play, but credit score is a big one.
- Delay the purchase of your new home if you can bring up your credit score. The lender should be able to advise you what you need to do to bring up your credit score and how it will change the interest rate you will get.
- Your higher credit score can also save you money on your insurance.
Find a House that Needs some Work.
- A house that needs some work in a good area can be a steal. If your Realtor can review the comps, along with work with you on getting some quotes for rehab (if you are not doing it yourself), you may be able to get a home below ask or market value.
- You will want to make sure the cost of repairs, either done by contractors, or by yourself, is cost effective, and in the end does not cost you more than paying for a move in ready home.
Purchase a Home in Winter.
- The time of year does make a difference when it comes to home buying. In the winter, home sales slow and sellers tend to price competitively. Which means lower than they would during the popular spring and summer home buying and selling season.
- As a side note to buying in the winter, the inventory is limited compared to other parts of the year. You may be able to save money, but will there be the home of your dreams up for sale.
If you have any questions about real estate or would like to buy or sell a home, Investment property, or commercial property in Michigan, please e-mail us at email@example.com or call 248-294-7850.
Scott Fader and Gary Brincat
Mitten Realty Group, LLC
Mitten Realty Group is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.