When you’re in the market to purchase a home, you have to consider if it’s just a stepping stone or your forever home. There are pros and cons to both scenarios. Here are some tips that can help you to save some money when it comes to purchasing your forever home.
Location Is Paramount
The location and neighborhood of your home purchase are something that you can’t change. You may be able to purchase a home at a more reasonable price if the neighborhood is one that’s up and coming versus being a desirable one. This solution isn’t without a degree of risk. The pendulum can swing both ways and the neighborhood may start to go downhill instead.
Size Comes at a Premium
The size of the lot is another factor that you need to consider when you’re purchasing your forever home. You can always add onto your home over time if the interior dimensions are a little tight. Carefully consider if you’re willing to compromise on the lot size because you’ll be stuck with it unless you decide to move to another home.
Interest Rates Matter
The interest rates on home loans make a big difference in the amount of money that you spend. A lower interest rate can dramatically reduce the total amount that you’ll pay for the home over the life of the loan. Another thing to consider is the length of loan. A shorter loan may also help to reduce the amount of interest owed.
Fixer Versus Turnkey
You tend to pay a premium for a home that’s considered turnkey. This means that you don’t have to do anything to the home before you move into it. A fixer may or may not be livable depending on the degree of projects that you want to tackle. Fixers tend to offer you more for your money.
Look to Essentials
Some of the best ways to save money on a home are to consider the big projects that will need to be completed. For example, a solid foundation, updated electrical and plumbing, and a new roof can cut your overall costs. Have a home inspection done prior to signing so that you know what to expect in the home.
Another tip is to pay extra on your mortgage each month. This will also reduce the amount of interest that you pay. It can even cut the amount of time that you have to pay back the loan balance.