Brilient Ways to Save Money : Your home is likely the most expensive thing you’ll ever purchase and you’ll spend years paying it off. You’ll want to make sure to find a home you love and will enjoy for years to come. Plus, by purchasing a home, you can start building equity in your home instead of paying rent to someone else. Owning a property is a ‘dream’ that most of us nurture. And, as soon as we can, we would want to enter what is perceived as our own personal heaven on earth.
1.Consider a loan discount
Some lenders may offer you a loan discount on your mortgage in the form of points or lender credits. Discount points (typically) lower your interest rate in exchange for paying an upfront fee.Lender credits lower your closing costs in exchange for accepting a higher interest rate. This may be attractive to a buyer who doesn’t have much money upfront to put toward closing costs.
2.Family before bank:
They tell you the benefits of availing of a home loan are many. The interest rates are low at present, the tax benefits are too attractive to ignore, etc. But even a naïve buyer knows that he has to pay off everything with a huge interest, and what is termed a ‘benefit’ may not actually be that beneficial.
3.Determine your time frame
Once you calculate how much you need to save, it is important to determine your goals of when you’d like to purchase your new home. This will give you a measurable timeline and an easy breakdown of how much you will need to save every day/week/month to stay on schedule with your savings.
4.Get rid of one car or downgrade your car
Cars can cost a large fraction of your pay cheque, with monthly payment, gas, maintenance, and insurance all weighing in. If you have a partner or own two cars, consider getting rid of one. This can save you thousands of dollars per year. If getting rid of one car isn’t a feasible option, think of moving closer to work to save money on gas or commuting to work through public transit instead.
5.Make a higher down payment
Making a higher down payment can save you on several fronts. It may help the seller accept your offer, even though it may be lower than others. It may help you pay less interest by taking out less money in the form of your mortgage.
6.Make a lower offer
While offering a lower purchase price isn’t as attractive to a seller, you may be able to sweeten the deal in other ways. For example, the seller may be interested in a quick closing or you could offer to purchase the home “as is” without any repairs or improvements requested. Just make sure you have a good idea of the condition of the home prior to purchasing it.
7.Home buyer rebate
The seller typically pays for realtor fees for both themselves and their buyer, but you may be able to get your buyer’s agent to agree to a home buyer rebate. Some agents offer this perk and provide their buyer with money back in the form of a credit at closing that comes from their own commission.
8.Be flexible on your criteria
You’ll save money by staying flexible in which homes meet your criteria. For example, split-level homes are typically less expensive than others. Also, you may be able to get more square footage for your money if you’re willing to opt for a multi-level home.
