5 Money Saving Tips for First Time Home Buyers
By MGB • Nov 12th, 2011 • Category: AdviceBuying your first home can be exciting, but it can also be a bit intimidating. After all, you’re making the biggest purchase of your life and will spend the next 30 years paying for it. Of course, the biggest thing first time home buyers often worry about is the cost and with good reason. Thankfully, there are a few ways you can control how much you spend. Here are five money saving tips for first time home buyers.
Get an Inspection
You’ve probably heard this time and time again, but you need to get a home inspection. Yes, it will cost around $500, but it can save you thousands of dollars down the road. It doesn’t matter if the home is brand new, it still needs an inspection. Once an inspection is done, you can then determine what can be fixed on your own, what you should ask the seller to fix or if you should walk away completely.
Look at Other Neighborhoods
There’s a good chance that you know exactly which neighborhood you want to live in, but a few miles can save you thousands of dollars. Instead of shooting for that sweet spot, check neighborhoods in the surrounding areas. Not only will you save money, but you may be able to buy a bigger house.
Consider Fix-Me-Ups
There are a number of homes that have good bones, but aren’t the prettiest to look at. While you may shy away from these homes, those cosmetic blemishes can reduce the price of a home significantly. Not only that, but this gives you the chance to remodel the home exactly the way you want. You’ll be able to have a showroom home for a fraction of the cost.
View Foreclosures and Short Sales
A great way to save thousands of dollars off the asking price is to look at foreclosures and short sale properties. Both offer a great way to get an expensive home for a fraction of the cost. There are a few catches though. For example, with foreclosure properties, you have to take the home as is. The bank is not going to pay for repairs. Another fact to keep in mind is that it might take months to even get a counteroffer from the bank on a foreclosure or short sale.
Opt for a Fixed Rate Mortgage
There was a time when people suggested getting a variable rate mortgage. However, we are currently in a buyer’s market and interest rates are lower than they’ve ever been. That’s why it pays to go with a fixed rate mortgage. When the housing market bounces back, you won’t be left scrambling to make your payments.
Buying your first home should be an enjoyable experience. However it does take a bit of work and sacrifice to save money. You may need to buy a home outside of your desired neighborhood and a home that isn’t cosmetically perfect. You should also get an inspection, consider foreclosures or short sale properties and opt for a fixed rate mortgage. All of these tips will save you thousands on your first home.
About the Author: Blair Shinsel is a writer and real estate expert who enjoys helping first time home buyers find the perfect property without breaking the bank. He also enjoys writing about personal finance, Money Mutual accounts, and investments.
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