Savvy Financial Tips For Buying Your First Home
|Published: 12th July 2019 20:00|
Buying your first home in without question one of the most notable financial decisions that you can make. However, considering that a mortgage is a rather serious commitment as the terms of the loan are usually 30 years. In order to be money-savvy when buying your first home, there are several effective ways that you can reduce the amount of money you need to pay and significantly increase your savings. With these top financially savvy tips, you may be able to purchase the home of your dreams for less than you may have thought.
#1 Shop Around For Loan Quotes
While you may be tempted to grab the first deal that appeals to you, in order to be money-savvy, you should rather take time and care in shopping around for mortgage quotes at various lenders. There are a few platforms available such as habito.com that offer the beneficial service of comparing mortgage deals for you, which will prove undoubtedly handy for saving a substantial amount. Interest rates will vary from each lender and each lender will also charge varying fees, which is why it is recommended to carefully compare at least 4 different deals from different lenders.
#2 Save At Least 20% For Your Down Payment
One of the most realistic ways that you can save when buying your first home is to save enough funds to be able to pay at least 20% of the mortgage amount towards your down payment. This will ensure that your monthly payments will be considerably less in the long run. What’s more, a larger down payment will reduce the relative interest payable on the mortgage significantly, which means that you will essentially save a large amount of money as a result.
#3 Opt For A Home That Needs Improvement
When you are hunting for your dream home, it may be difficult to consider your savings as charmingly modern homes that have recently been renovated will likely be far more of an attractive option. However, if you maintain the ideal of saving as much as possible, it is best to consider the option of purchasing a home that needs improvement will be a far more affordable option. The price tag on a home that needs some fixing up will be a lot more pocket-friendly and when taking into account that you may only need to repaint and add a few charming fixtures suggests that improving your home won’t cost too much either.