How to save money when buying a house?

Believe it or not, but the most delightful decision is to purchase a house. Besides assuring shelter and security, a house is also known to give satisfaction and happiness. However, as a house is a life time investment, it involves a lot of money. In addition, with the rise in property prices, people are forced to spend more and a significant portion of the investment turns into dead investment. Thankfully, there are many varied ways to save money when buying a house. Let us discuss few of them –

Buy a foreclosed homeView in gallery

Look for yourself – It is a common phenomenon to purchase a house through a real estate agent. However, people do not realize that by looking on own allows one to make large savings. Ask friends and relatives to help you out. Look for “For sale boards” when you go on a drive. Go through newspaper classified as well as internet classifieds.

Buy house under construction– Instead of buying house or apartments that are fully constructed, consider purchasing a house that is under construction. The earlier you book the better as the home builders are in need of money for the construction process, and as the apartments start getting booked, the builders gradually increase the purchase price. Purchasing the house under construction shall also give you the privilege to get the rooms constructed according to your requirements.

Hunt for motivated sellers – the easiest and the sure shot way to save money when buying a house is to hunt for motivated sellers who need urgent cash. The need of urgent cash on the part of the sellers shall give you the scope to negotiate. If you like the house, discuss the price range with the seller and chances are that he shall make few reductions.

Buy a foreclosed homeView in gallery

Purchase foreclosure home – Hire a reasonable real estate agent and ask him to find a foreclosure house or a HUD house for you. These homes are owned by the bank and can’t be purchased at a price much below the market price as banks are eager to free their investment. However, you may require spending a certain amount on home improvement.

Get a loan – if you are running short on budget, then getting the best possible finance shall help you make potential savings. There are various types of mortgages available in the market, with different interest rates and monthly payment. Select one based on your monthly income source so that the monthly payment can be discharged easily.