Ways First-Time Homebuyers can Save MoneyThe first step is to recognize what expenses you don’t need to carry over to your new house. For instance, this is a golden opportunity to get out of a storage unit lease. It’s also a good time to truly get organized and purge what you no longer use and/or don’t need anymore. You might even make some cash, if you go about it the right way. After all, you’re going to fork over between 3.5 percent and 20 percent of the purchase price as a down payment.
Buying your first home is a major achievement but it’s not without its fair share of headaches. Finding the right property can take months but that’s just the first step in what can sometimes be a complicated process. Trying to negotiate the terms of the purchase can be enough to make your head swim and if you’re not careful, it could end up costing you money in the long run. —Smart Asset.comYou’ll also need to make an earnest money deposit, pay for various inspections, incur moving costs, and have closing costs on top of it all. Then, there’s all the changes you’ll want to make to your new home. For example, you might consider a shower tub combo replacement and that will be a big expense. The point being, buying a home is a very large financial investment but that doesn’t mean there aren’t ways first-time homebuyers can save money:
- Junk as much as possible. Simply put, the more stuff you move from location to another, the more it will cost in time, effort, and money. So, do yourself a favor and be dedicated to parsing down on your possessions. You’ll easily identify things you no longer need and/or don’t use if you’re being honest.
- Stop paying for self storage. Now is the perfect time to resolve to give up leasing storage space. Having the financial obligation of owning a home is plenty of incentive to stop paying for a self storage unit. Chances are excellent you don’t even remember exactly what’s inside.
- Cut down on monthly expenses. Do you really need that super large cable television subscription? What about that and other monthly expenses which have become routine? If you look, you’re going to find a number of monthly costs you cannot justify in continuing to pay.
- Negotiate repairs with the seller. There are instances when repairs to the home are needed. If you’d like to shift the burden to the seller, this is completely normal. Ask for seller concessions and the issues will be dealt with prior to you moving into the house.
- Do-it-yourself instead of hiring a pro. For small repairs, don’t waste money bringing in a pro. You’ll pay a premium price to do so and for substantially less, you can go the DIY route. Most small repairs can be done with a few common tools, some materials, and by watching a couple of DIY home tutorial videos.