Saving
money is always important. When you are buying a home, it becomes monumental.
If you do not know what to expect, it will seem like everyone has his or her
hand out. These tips can save you hundreds, maybe even thousand of dollars in
purchasing your home.
Hire a Realtor: I know this sounds like an ad for myself, but statistics show,
buyers who use an agent to represent them, average much lower costs. A
good agent will know where to cut corners and where not to. They know the best
rates for service providers such as lenders, inspectors, insurance and movers.
Transaction Fees: Most agencies charge between $150 - $800 in
transaction fees. Ask up front what the fee will be.
Negotiate: Price is only part of the picture when making an offer. A
seller may accept a lower price if your terms and mortgage information may be
more desirable. Try changing closing date or initial deposit instead of price.
Get Pre-Approved: If you are pre-approved (not just
pre-qualified) then you are almost as good as a cash buyer. This gives you a
much stronger negotiating position. Brokers. Their requirements may be more
stringent but their costs are usually lower. Always ask for a good faith
estimate. This allows you to compare apples to apples. Try a bank first.
Mortgage Fees: Although every loan has a variety of fees involved, you
need to compare good faith estimates. Rate is only part of the picture. Make
sure you are not paying excessive junk fees.
Closing Date: Closing at the end of the month saves you interest at the closing
table. This can be a considerable amount.
As-Is: Think twice before you accept an as-is
counter-offer. There may be repair items that need to be resolved before you
move in. If the deal is as-is, this will come out of your pocket. I recommend a
2% repair clause. If you do go as-is, make sure you get a thorough inspection.
Shop Inspectors: Comprehensive inspections vary in price from
$175 - over $600. You want a good inspector that will thoroughly inspect the
property and honestly report his findings, but no need to over pay.
Shop Insurance: Here, too, you can seriously over pay, but make
sure you are comparing apples to apples. Policies vary in coverage, deductibles
and actual value covered.
Title Company: Unless there are complications involved in the
transaction, it is not necessary to have an attorney close your purchase. If
you choose to have an attorney, ask what their fees up front and compare to
title companies. The policy price is pretty standard, its the charges for
processing and paper work.
Movers: Ask for a quote in writing and make sure they guarantee no
additional charges. Stay with the big names unless they come highly recommended
by a good friend.
Ask
me how I can help you with all of these tips. I am happy to provide the names
of several service providers in each field.
I can also assist you in reviewing your good faith estimates. I am very
familiar with what fees are normal and common.