No one likes to waste money. You want to know every dollar is well spent but all too often home buyers leave money on the table or literally lose money or give it away without knowing about it.
Here are 6 ways you may be giving money away when you purchase a home.
#1. Not taking advantage of new programs.
There are new programs for first-time homebuyers and repeat buyers about every six months so you want to check with your lender about any new programs that you could take advantage of.
#2. Not asking the seller to pay closing costs.
There's no harm in asking and even if you get a no, you'll know that you didn't leave that money on the table. Closing costs can be upwards of $10,000 depending on the cost of the property itself so asking the seller to chip in release negotiate on paying some closing costs could save you a lot of money.
Read more: Costly Mistakes Home Buyers Make
#3. Buying a home before your credit can afford it.
Often times first-time homebuyers jump into the home buying process before their credit is really up to par and they can end up paying a lot more in downpayments, interest rates and mortgage insurance. Improving your credit rating before buying a home might save you a lot of money.
#4. Not shopping for the best home loan.
A great lender will find a variety of different programs that might meet your needs. However, you can always shop around just as you would anything else. You are buying their home lending services so make sure you're comfortable with your loan officer and the programs they provide you.
#5. Not reading the fine print.
Make sure you read everything in your good faith estimate from your lender or the initial HUD statement. You could be missing out on a lot of extra money or because you didn't pay attention to the fine print you could lose something that you thought was written into the contract.
Related: 5 Super Smart Home Buying Strategies
#6. Not negotiating for everything.
Of course you don't want to exhaust your seller by asking for everything but you don't want to forget to negotiate for the important things. Perhaps you really like the sellers refrigerator or living room set. It can't hurt to ask for it and to throw it into the cost of the property. You just never know; they could be getting rid of it anyway.
You don't want to leave money on the table and you certainly don't want to lose money that you could be getting when purchasing a home. These are just a few of the top ways that many homeowners can lose out on extra money when it comes to purchasing a property. For more answers to your home buying questions please contact my office today.