From Sage Realty Real Estate Agents: Discuss Six Tips on How to Save When Purchasing Your First Home
Purchasing a home comes with high costs, particularly concerning for the first-time home buyer. Real estate agents at Sage Realty LLC discuss ways in which the first time homeowner can reduce the expenses of owning a new home with the following six tips:
Get Rid of Private Mortgage Insurance
Many first-time home buyers do not have the savings for a 20 percent down payment and are required to carry Private Mortgage Insurance (PMI). The additional expense can add more than $100 to a buyer’s monthly payment, depending on the amount of the loan.
While mortgage companies must, in most cases, require this additional experience, by paying extra on your mortgage payment for a few years, you can pay down your balance quicker, allowing you to cancel the PMI.
Forego Appliance Insurance
It may be tempting to buy a “home warranty” policy for your appliance and systems, but many real estate agents suggest otherwise. The additional monthly expense can add up quickly, and with this type, it is likely you will not get back as much as you put in.
Instead, set aside the amount you would have paid into a dedicated home repair savings account. Within a year you will have saved up enough to cover any repair or replacement costs. This money will also come in useful if other household emergencies present themselves.
Shop Around for Homeowners Insurance
Buying a new home is a very exciting time. Excitement can cause first-time homebuyers to grab up the first homeowners insurance policy they come across.
We recommend taking some time to shop around for your home insurance. Doing this can reduce your insurance payment by up to 30 percent, which of course adds up to a large amount saved when thinking long-term. Consider eliminating the automatic “consumer price” increase each year, as you often do not need that.
Resist the Temptation to Splurge on New Furniture
As tempting as it may be, it is best to wait to get new furniture or other household items on credit to avoid additional debt. Instead, set aside a small amount each month, or buy lower end items that can be upgraded at a later date. This will free up space in your budget for necessary expenses or needed renovations within the first few years of homeownership.
Upgrade Your Energy Efficiency
Make sure your home is as energy efficient as possible. Perform a home energy audit, paying attention to your light bulbs and insulation. Some utility companies offer these at no charge. Use the money you would have used on new furniture to add additional insulation to your walls and attic spaces and upgrade those drafty windows.
Do Lawn Care Yourself
While it might be tempting to sign up for a lawn care service, it is best to hold off until you have a feel for what your lawn actually needs. Most people can handle their lawn care themselves, which means one less monthly bill to worry about. Research lawn care on websites dedicated to using the least amount of chemicals possible. You will save money and the environment!
For more information on how to save money as a homeowner, please contact the experienced real estate agents at Sage Realty LLC at 610-687-4000.
Tags: Real estate agents