How to Save Money on Your Next Home
There are a lot of moving parts involved when you are purchasing property. Aside from the time spent looking at homes, there is also a lot of planning and paperwork. The last thing you want to worry about is spending even more money than you have to. Here are 5 tips on how you can save when purchasing your next home.
Always Hire a Real Estate Agent
A big mistake some people can make is to purchase a home without a licensed real estate agent. An agent adds tremendous value based on all of their experience. Not only can they assist with the paperwork, but their experience in the local market will aid you in your negotiations. As not all deals are straight-forward, an agent can help maneuver a transaction so that it closes.
For buyers with down payments that are less than 20% of the home’s value, private mortgage insurance will be added to your monthly mortgage payment. If you can afford to put down at least 20% you will avoid this fee being added on top of your principal, interest, taxes and homeowner’s insurance.
Reduce Property Tax
There are a few ways to reduce your property tax. If you feel that your assessed value of your home is high, you can request a review. Sometimes this can work in reducing the value and the amount of your taxes after an inspection is completed. In addition, many areas offer a reduced tax for owners who occupy the home. If you reside in the home full time, be sure to see if your town offers this and complete the necessary paperwork on time.
Shop Around for Insurance
Just like you can shop around for auto insurance for your car, you can do that for your homeowner’s policy for your property. It is worth investing some time into searching for a company that can offer you the best rates and coverage. Bundle packages also can be found with discounts when you add auto insurance to the plan.
Additional Mortgage Payments
If you are financially comfortable enough to do so, pay a little more each month towards your principal and you can end up saving thousands of dollars over the course of the mortgage while reducing your term.