Buying your first home is an exciting step, even though it can also come with significant costs. But there are smart ways to save money while going through the process of getting a home.
When it comes to buying a home, knowing about the associated expenses involved is very important as it helps you figure out where you can save money. Especially for people who are buying a home for the first time, there are unexpected costs to be aware of.
Ways to Save Money When Buying a House in Boise
When you're buying a new home, there are things you can do to save as much money as possible. These steps can be taken before and during the buying process, and they can help reduce the overall cost of buying a home.
Find a Good Boise Real Estate Agent
Getting help from an experienced and dependable Boise real estate agent who knows the area well can save you time and money. This is especially important for people buying a home for the first time, as a good agent can guide you through the process and show you how to save money. You can ask family, friends, or look online to find good agents.
Save Money for the Down Payment
It's not always easy, but having at least 20% of the home's price for the down payment can save you money in the long run. Having a larger down payment can also mean you don't need to pay for private mortgage insurance (PMI).
Improve Your Credit Score
Your credit score affects how much you pay in interest and fees. If you work on making your credit score better before you buy a home, you might have lower monthly payments. A higher credit score can also help you get a lower interest rate.
Consider Buying in the Winter
Most people buy homes in the spring and summer, which can make those times more expensive. If you buy a house in the winter, you might be able to save money. Consider asking your Boise real estate agent to help identify homes that are going on the market at the end of Autumn or the beginning of winter.
Negotiate Closing Costs
Closing costs can be expensive if you have to pay for them all by yourself. These costs include fees, interest, and other closing costs. But you can talk to the seller and try to get them to pay for some or all of these costs as part of the sale of the home.
Consider a Shorter Mortgage
Choosing the right mortgage is important. Longer mortgages, like ones that last for 20 or 30 years, can mean lower monthly payments, but you'll pay more in interest over time. Sometimes, shorter mortgages can save you money in the long run because you pay less interest, even if you have to pay more each month.
Saving Money After Buying a Home
Besides saving money while you're buying a home, there are things you can do after you've bought it to lower your mortgage costs:
Pay Extra Each Month
Adding a bit more to your monthly mortgage payment can help you pay less interest over time. You can use online tools to see how much you'll save by paying more than the minimum.
Refinance Your Mortgage
Refinancing your mortgage can lower your monthly payments by getting a lower interest rate. If that's not possible, you might consider refinancing to extend the loan term. For example, going from a 20-year loan to a 30-year loan might lower your monthly payments, but you might pay more interest overall.
Check Your Property Taxes
Your mortgage payments often include money for property taxes. If the value of your property changes, your taxes might change too. If your property is worth less, you might be able to pay lower taxes.
Use Less Energy
Energy costs can add a lot to your monthly payments. But there are things you can do to save money on energy. You can use energy-efficient light bulbs and appliances, plant trees for shade, and make sure your home is well insulated. These changes might cost money upfront, but they can save you money on energy bills.
Getting Ready to Buy
Getting ready is very important. Before you buy a house, you need to know what your options are. The more you know, the better prepared you'll be, and the more money you might save.
Get a Home Inspection
A home inspection might cost you some money, but it could save you a lot more in the long run. If there are problems with the house, you can use the inspection report to negotiate a lower price.
Know About Risky Areas
If the home you want to buy is in an area that's prone to disasters like floods, you might need to get expensive insurance. Finding out about this early can help you avoid surprises. You can ask your realtor for advice about this.
Compare Mortgage Lenders
Don't just go with the first mortgage lender you find. Talk to different lenders to see which one offers the best rates and options for you.
Figure Out What You Can Afford
Before you buy, you need to know how much you can afford to pay each month. You can use online calculators to help you figure this out. This helps you choose a home and a mortgage that fit your budget.
Understand the Contract
When you buy a home, you sign a contract. But before you sign, you can still negotiate some things. If you're not sure about parts of the contract, talk to the seller and try to make changes that make you feel more comfortable.
Consider a Lawyer
It might be a good idea to have a lawyer look at the contract before you sign it. A lawyer who knows about real estate can help you understand what you're agreeing to.
The more you know before you buy, the more you can save money both before and after you own your home. Take time to learn about things that can cost you money and how to avoid them. For more information about buying a home, talk to our Home Lending Advisors or check out the mortgage options available to start your journey to owning a new home.
Related: The Impact of Interest Rates on the Housing Market
King & Edge Real Estate in Boise, Idaho
As experienced Boise real estate agents, we are honored to have the opportunity to serve you and be a part of your real estate journey. Let us guide you towards a successful and rewarding experience, where your goals become our goals, and your vision becomes a reality. Contact us today and discover the unparalleled service and expertise that sets King & Edge Real Estate apart as we help you sell your home in Boise or find your place to call home.
