Buying a home is many families’ largest investment. Such an important purchase takes a great deal of consideration, research and financial discipline. If you want to get the most out of your home purchase, implement these 4 tips that can save you money on your mortgage and yearly expenses.
1. Get the Best Interest Rate
Your credit record has a significant effect on the interest rate you will be offered by a financial institution. Make sure your credit score is 740 or higher to ensure you will be considered for the best possible interest rates. If you have some troublesome entries on your credit report, see that they are resolved in advance of your home purchase and that your credit report is updated to reflect these changes.
2. Put Down the Largest Down Payment Possible
A down payment of at least 20 percent is customary for most mortgage loans. However, if you have more funds available to put toward your mortgage, you will be able to get a better interest rate that will mean a lower mortgage payment throughout the year. This measure is often the best way to ensure that your new mortgage cost fits easily into your monthly budget.
You may need to rent a property for a longer period of time, in order to save a larger amount for the down payment. A real estate company, such as Donna Lasater Real Estate and Property Management, can provide information on rental properties and properties for sale.
3. Make Sure the Home Is Valued Correctly For Property Taxes
Property taxes will add a considerable amount to your monthly mortgage payment. Make sure that the property you are purchasing is appropriately valued before purchasing it. If you try to contest the property assessment after purchase, you may lower the value of the property below the amount of your mortgage, which will decrease the amount of your equity in the home.
4. Have the Home Inspected
A home inspector can find the hidden problems in a home that can end up costing you thousands in repair bills. Although you may prefer not to go to the expense of hiring your own home inspector, it can pay off if it provides information that will allow you to negotiate a lower price on the home if problems are found.
You can lower the costs of buying your new home if you pay attention to the small details that affect the overall price. These tips will help you to get the best deal.