Saving Money in an Expensive Home Buying Market

The average mortgage interest rate in 1981 was 16.63 percent. The highest weekly rate on record averaged 18.63% in October of that year. Compare that to the lowest weekly rate of 2.96% that registered in late 2021. Today, mortgage interest rates hover around 7%, a rate that still scares many home buyers out of the market. Combined with kyrocketing real estate prices in recent years, potential buyers need to do a lot of research, planning, and smart decision-making to ensure that every dollar counts. There are several strategies that can help you lower your home buying costs and make the experience more affordable. ABC Quality Moving and Storage offers these tips and tricks that can help you save some cash and make your dream of owning a home a reality.

1. Establish a realistic budget. The first step in reducing costs when buying a home is to establish a realistic budget. Determine how much you can comfortably afford based on your income, expenses, and long-term financial goals. Avoid the temptation to stretch your budget to the limit, as this can lead to financial stress down the road.
2. Improve your credit score. A higher credit score can help you secure a lower interest rate on your mortgage, saving you thousands of dollars over the life of your loan. Before you start house hunting, take steps to improve your credit score by paying down debt, paying bills on time, and checking your credit report for errors.
3. Shop around for mortgage rates. Gone are the days you just work with one financial institution for checking, savings, and a mortgage. Shop around and compare rates from multiple lenders to find the best deal. Even a slight difference in interest rates can make a significant impact on your monthly mortgage payments.
4. Consider a smaller home or trimmed wish list. While it’s natural to want a spacious dream home, consider the long-term financial benefits of purchasing a smaller, more affordable property. A smaller home often means lower mortgage payments, property taxes, and maintenance costs. Similarly, take the inground pool, third bathroom, and finished basement off of the must have list if it is stopping you from your overall goal of home ownership.
5. Don’t rule out a fixer-upper. Homes that need some TLC may come with a lower price tag. Look for homes that need cosmetic repairs or minor structural work that you can complete yourself or with the help of a contractor. You can save thousands of dollars by taking on some of the repairs yourself.
6. Negotiate with sellers. Until recently, many home buyers were waiving inspections just to get into the competitive seller’s market. Under most circumstances, you should not be afraid negotiate with sellers. You may be able to secure a lower purchase price, seller concessions, or even have some necessary repairs or upgrades covered by the seller.
7. Try to avoid private mortgage insurance (PMI). If you can’t afford a 20% down payment, you’ll likely be required to pay for private mortgage insurance (PMI). To reduce this cost, consider saving for a larger down payment or exploring loan options that don’t require PMI.
8. Consider everything else that makes up your monthly payment. Before making an offer, research the property taxes in the area where you’re buying. High property taxes can significantly impact your ongoing homeownership costs. Look for areas with lower tax rates if possible. Investigate any association dues (HOAs) that can end up being more than the loan portion of your overall payment.
9. Choose a reliable home inspector. A good home inspector can identify potential problems with the home that may require expensive repairs down the road. Look for an inspector with a good reputation and experience in the type of home you are considering. Paying for a thorough inspection upfront can save you money in the long run.
10. Hire ABC Quality Moving and Storage to save big on your move. Your time is worth money, too. Save yourself the stress of moving day by hiring ABC Quality Moving and Storage to help you get your stuff from your old place to your new one. Shop around, and then call ABC Quality Moving and Storage for the best prices on professional moving. We can show you the most cost-effective pricing for your situation. Our pricing is transparent and our services are amazing.

Home ownership is not just a lofty dream. Use these tips and tricks to make that dream a reality. Once you’ve chosen your next home, call ABC Quality Moving and Storage. Our experienced and professional movers take the stress out of the moving process. Most importantly, we are available for you before during and after your move. We want you to know you are in the best hands with our local and family-owned St. Louis moving company. Call ABC Quality Moving and Storage today at 1-888-983-MOVE (6683).