Longboat Key, Florida | September 20th, 2018 – Looking into buying a new home can be a little daunting. However, when you understand important financial tips for when is the best time to buy a home, you can save tens of thousands of dollars. It can also make buying a home a reality now. Here are some unique financial home buying tips you might not have considered.
Check the Listing Price Market
Even homes that have comparable features can be listed at vastly different prices. According to The Balance, there are many reasons for this. This includes a slightly larger lot size, an extra bedroom, or simply the selling approach of each seller.
Make sure that you do your research and look up the average down payment in your target area. You can also research the percentage of homes that sell under their list price. Only 5.2 percent of homes sell under their listing price in Longboat, Florida. This will help you get a better idea for what area you should look in, and it can give you some negotiating power if you really want to pursue a specific home.
Search Online for Mortgage Lenders
Online lenders come with a lot of benefits. For instance, you can customize and experiment with different loan variables from the comfort of your couch. The approval process can take as little as a couple of minutes, which can save a lot of headache when you’re wanting to close on a home you’d really like to own.
If student loans are one of the biggest factors that are preventing you from saving money, or if you have high interest rate in addition to your loans, it’s possible that you can save a lot of money by combining your student loans and mortgage. If you have sufficient home equity and income, you can get “cash-out” refinances, which will allow you to pay off your student loans.
However, this depends on the types of loans you have and the financial situation you’re in. If you have a high-rate or private loan, you can save a ton of money by combining your loan and mortgage. If you have a low-rate loan, it wouldn’t be as big a benefit.
Get Private Mortgage Insurance
The Consumer Financial Protection Bureau states that private mortgage insurance is a type of mortgage insurance that protects the lender in case payments aren’t made on a loan. Some private mortgage insurance providers will even provide partial mortgage compensation if you’re fired or medical problems prevent you from working. If you have a conventional loan and make a down payment of less than 20 percent of the home’s selling price, then you’ll need PMI.
Look Into FHA Loans
If your income falls in the low to moderate range and you have a credit score above 580, it might be possible for you to qualify for a mortgage offered through federally qualified lenders that is insured by the Federal Housing Administration, or the FHA; you’ll only have to put down about 3.5 percent for the down payment. This is especially useful for first-time homebuyers.
General Property Search:
A recent article from Forbes emphasizes that cutting costs in minor ways and downsizing your lifestyle by just $10 a day can help you save a lot of money. After a couple of years, you can save over $10,000 toward your dream home and the costs of moving. Find simple hacks to cut back, save more, make an extra dollar, and find ways to pay. These collective efforts will help to ensure your home-buying experience is wildly successful.
By Jim McKinley