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Looking to buy a home? It's tough setting aside money for a down payment and finding the right house. Well, in today's contributed post, learn how to go about buying a home the frugal way! Enjoy!
Buying a home is likely one of the largest purchases most people will make in their lives, which can be scary and intimidating to some. Especially for those who live to live life frugally, as they aren’t used to spending a lot of money, let alone hundreds of thousands of dollars. And with home prices rising, it is becoming more difficult to afford for some people.
With that in mind, this post is going to look at a few tips to help you save money and find great deals when buying your home. These will be great if you are trying to purchase on a low income or simply trying to maintain your frugal lifestyle during the home buying process.
You should never just buy a home on a whim. You need to put time into not only making sure that you want/need a house, but also need to make sure you can afford it. This often results in spending many months (or potentially even years) to save enough money to feel comfortable investing in something as expensive as a home.
Remember, this isn’t a race. You might need more time than your friends and family to save for a home, and there is nothing wrong with that. There is nothing wrong with giving yourself more time to save and prepare, as rushing the purchase of a house could lead to a lot of financial troubles, potentially.
When buying a home, it is a requirement for most people to go with a mortgage to help pay it off. However, not all mortgages are created equal. Some will have different rates and you will have the choice between an open or closed mortgage.
However, if you want to save some money on your mortgage, you should consider FHA financing. An FHA loan is great for those who can’t afford a down payment, and they offer mortgages with a smaller down payment. Of course, there are certain requirements in order to qualify for an FHA loan, so do your research and see if you qualify.
While some people prefer to look for a home on their own, it is generally a decent idea to work with a real estate agent. Not only will they do a lot of the research and legwork for you, but can help you find good deals. There is a good chance that working with one will either save you money, or get you a better deal for your money.
Even better, most realtor fees are covered by the seller of the home, so you as a buyer shouldn’t be afraid to use their services. There are likely dozens (or more) real estate agents in your local area, so be sure to shop around and see who you would prefer to work with.
Sometimes, it isn’t the actual purchase of the home that ends up being the problem, but the spending that occurs after you get it. When most people move into a new home, they tend to want to fill it with a bunch of furniture, art, and other types of decor.
However, these little things add up over time and can be a real detriment to your frugal lifestyle. Instead of outfitting your home all at once, you should look to purchase it little by little. Of course, the essentials such as a bed, couch, table and chairs, should come before art and other cosmetic additions.