Thursday, 19 March 2015

How to save money at the time of booking property?

Buying a property is a huge investment, so it’s imperative to consider a lot of factors before buying a house. Mentioned below are a few points that will help determine different ways in which one can save money. Even a small matter can make a huge difference. 

Do not consider buying a house if you have the chance of shifting – If there is a slight chance that your work demands your shift then never consider buying a house. If you buy a house and the sooner you sell it, there is a greater chance you will end up losing the money.

Make sure that your credit history is as clean as possible – It is most likely that the house that will be bought will be mortgaged, it’s imperative that the credit history is clean if there is any errors in any case, fix them.

Affordable house – We have many desires of a house that will meet and match the standards of a rich friend or a house that we just saw on TV. Falling into that category will have a huge impact on the cost. So it’s imperative that the house we buy matches the budget and not cross the pocket. Buying a house is only possible if the budget is five times the annual salary and that is the thumb rule. Many mortgage calculators are available online which help determine the cost of house that one needs to buy, keeping in mind the income, expenses and debt. This will also provide you the reality check at the same time. 

Buy a house which is near to a school or rather that falls in a school district – This is the most important aspect that needs to be taken up for families having school goers. These areas are a top priority amongst the home buyers.
Low interest you can qualify for a mortgage – High interest is paid while acquiring a loan, if proper research is done then you can find many banks that provide mortgage loan with low-interest.

Assistance from a professional / family / friends who are home owners. – It is always healthy to talk. Talk to acquaintance, share their experience, and about all the possible nuances that can occur in the long and lengthy process. Guidance from friend / professional can help with almost all the segments that one needs to be careful while buying property.

Getting loan approved before house hunting – This will help you not to go for that house which is not within the budget. Do not confuse the terms per-qualification and pre-approval. While per-qualification states that it is a qualification of finances and pre-approval is a revision of your actual income, credit bills and your debt.

Points is not equivalent to rate – Do not mistake these two terms, it is always a better deal if you get the loan on low-interest. While points determine a portion of the interest that you pay at the time of closing. When you are buying a mortgage there is always an option for paying additional points or a lower interest rate. It is a wise decision to go for the points only if you wish to stay in the house for more than five to six years.

Look around – Look around for similar homes and do your homework. Get to know the rate per square feet of other homes this will help you strategist your new bid and make a good deal. Also try to make a deal which is lesser than the amount as said by the seller. Also according to said price put a bid which is 6% less than the original price.

Help from engineers who are good at building houses – These people have a knack of what goes around the house. So it is imperative for the buyer to hire one of these in order to know the potential problems that may come from the surroundings of a house. This will help you determine the costly repairs in the future.

Evaluate the contents in the house – Go through every nook and corners; inspect ceilings, doors walls, and marbles for their fakeness. It is always wise to be open about every nook and corner. Put heavy stuff in the floor so that there is no scope for any mistakes.

Shop for Insurance – Buying a house involves huge investment so it is imperative that you buy insurance.
It is imperative you begin saving sooner –The time by when you have to pay off your mortgage you will have a setback. So it is always wise that you begin saving which will help you pay off your mortgage sooner than you think.

These are a few points that have been cited by professionals. How small a matter may seem or you might think that it will not be able to save you enough, but these few savings schemes will help enrich your pocket. Going by the saying, a penny saved is a penny earned, all of which makes a huge difference in the long run. One might feel happy about the fruits of buying a house at the moment but later when it is time to pay off the mortgage then the realization of saving those little savings come to mind. These petty savings make a huge impact in the long run and as a guide never underestimate the value of that 1% interest. Considering the points mentioned above which are refined from the investors perspective and the veterans in the industry. These points are a reflection of their experience over the years.

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