2020 was a rough year for everyone around the world. We have never survived a year quite like that one before in the history of modern man and because of that we are all itching for a change. We want our normal lives back and if we can’t have those then we need something (anything) that helps us know that 2021 will be different.
With so many countries and nations launching COVID-19 vaccine programs from late last year, we all started 2021 with hope in our hearts. Hope for better days, health and happiness. For a lot of us that change will come in the form of a new home.
Buying a new house will give us the fresh start we are all after for 2021. Purchasing a house and saving money are usually totally opposite each other on any scale. You may be wondering how buying a new house can save you money but I’m here to tell you how it can.
1. Pick Your Area Carefully
If you’re careful with selecting your new neighbourhood then you could save yourself a whole lot of money. The up-and-coming areas are a lot cheaper and often you get a lot more house for your money in other areas. Sometimes it’s a better investment decision to buy near a popular neighbourhood instead of in it. You could save yourself up to 30% on the purchase price.
2. Buy A Fixer-Upper
You would be amazed at how many homes are for sale way below market value just because they need a little TLC. Buying a fixer-upper can be a great way to save money as well as give you the perfect opportunity to fix it up the way you want to. The only thing to factor in with houses that need TLC is that they need time and hard work. You could hire outside help but then you won’t save as much money.
3. Avoid Paying Mortgage Insurance
If you need to get a mortgage for more than 80% of the cost of your home, you will be required to pay private mortgage insurance, or PMI. The only way you can avoid paying for this insurance is if you can make a 20% down payment. If you can’t afford the down payment, then shop around for a more affordable home until you can afford to make the down payment.
4. Choose Your Home Insurance Wisely
With all types of insurance, you can shop around for a better option. We all have our own set of unique requirements when it comes to taking out an insurance policy. You would be shocked to discover how different the fees for house insurance can be. There are many different insurance options out there for your home – just do your research first before you sign any contracts.
5. Decide What You Truly Need
Sure, we would all love a home with loads of space, extra bathrooms, a double garage and a pool. The problem only comes in if you can’t afford this plan. Make sure you know what your non-negotiables are and what your luxury would-be-nice things are and decide what you truly need from a house. You don’t need a pool, but you do need space.
6. Shop Around for Agents
Don’t ever just buy the first house you like at the asking price. Shop around for an agent that you can trust to find you a home in your chosen area at a price you can afford. Find South Jordan Utah homes for sale online and get in contact with a reliable agent who cares about you and not just your money. An experienced agent should be at the top of your list of non-negotiables.
7. Be Open to Multiple Lenders
You aren’t limited to certain lenders. Well, not unless you have a terrible credit score and in which case you shouldn’t be trying to buy a house. Shop around for home loan quotations until you find the one that works for you and your situation. Also, if you happen to qualify for a larger loan than you need, don’t be tempted to buy a more expensive house unless you need it and you can afford it.
8. Do the Inspections
Make sure you have the appropriate home inspections done before you purchase a house. This way you won’t be caught off-guard by any unforeseen costs after your purchase. Make sure you know what needs to be fixed on the house so you can get quotes and figure out what your total costs will be. Not everything will need to be fixed at the same time, but the more you know about the house the more you can prioritise the repairs.
9. Renting Costs More
This might not sound right to you at first but once you consider that your rental amount is going towards paying off someone else’s mortgage, it’ll make a lot more sense. Do the math on how much you have paid towards someone else’s house and you’ll be shocked at the total amount you’ve paid. Buying your own home gives you the freedom to make any changes you want to the house too.
10. Examine Your Contracts
HOA (homeowner’s association) fees can be anything from $50 to several hundred per month. These will largely depend on the amenities and services offered as well as your geographical location. It is important to remember that these HOA fees are in addition to your monthly mortgage, taxes and insurance. These fees and payments can all snowball if you don’t properly budget for them. Make sure you do all the research for all the costs that will be involved before you buy anything.
Buying a home isn’t only for wealthy people. If you do the appropriate research and make a few compromises, almost everyone can consider buying a home of their own. House shopping should be an exciting time for everyone involved and if it is done properly, it will be a magical time. The internet is a brilliant starting point for almost everything and buying a house is no different.