Many people find it more challenging to purchase a home because wages are not keeping up with home prices. Even with current low-interest rates, some people are finding it difficult to buy a home. This is due to the threefold difference in home prices relative to the wages in some Western states. It is vital to save money on home purchases, and there are many ways to do this. These are the top 5 secrets to saving money on Atlanta home purchases.
1. Increase Your Credit Score
It is easy to save money on Atlanta home purchases, even though it might take some time. It is essential to raise your credit score. This will help you get better terms and mortgage rates, as well as lower lender fees. It can also save you thousands of dollars over the lifetime of your mortgage.
Then, make sure to do at minimum the following.
“Pay down your credit cards balances. Your credit utilization ratio is the ratio of your credit card balance to your credit limit. This ratio is responsible for 30% of your overall FICO score. Your credit rating is impacted more by your payment history (35%). To maximize your credit score, it is recommended that your credit balances not exceed 15% of your credit limit.
“Don’t apply for credit or loans. Hard inquiries and new accounts account for 10% of your credit score. Your credit score will drop initially for a few months when you open a new account. If you are confident that you will be applying for a mortgage in the near future, it is best to wait to buy a new car or get a credit card.
2. Avoid Private Mortgage Insurance
You can save money on your Atlanta home purchase by taking steps to avoid paying private mortgage insurance (PMI). This can be achieved by saving enough to pay at least 20% down on your home.
You will be responsible for paying mortgage insurance if you don’t pay 20% of the down payment. Private mortgage insurance (PMI) is an insurance policy that covers the mortgage loan. Lenders are reimbursed for any funds lost if a borrower defaults.
Contact FreshStartHomeSales.com at 678-337-1165 if you would like to know more about PMI.
3. Buy Near a Promising Neighborhood/Area
The best way to save money on buying a house in Atlanta is to buy near, but not in, a promising area or neighborhood. The potential for greater returns without paying a higher price is there.
“Buying near is one of the best decisions for buying. . . a hot neighborhood. Sometimes it is not feasible or financially viable to purchase in one of the most desirable areas. However, you might consider looking closer. You can often save between 20-30% on your purchase price. You’ll also see faster appreciation rates. You will also be close to the amenities that make the hot neighborhood.
This strategy can be difficult to master and could even backfire. To learn more about the neighborhoods you are interested in, call an Atlanta agent at 678-337-1165.
4. Buy During the Off-Season
A great way to save money is to buy a home in the off-season. Peak season is when demand exceeds supply, which causes prices to rise and makes it harder to negotiate a lower cost, and it also increases the chance of bidding wars.
The best time to sell in most markets is usually in the late spring to early summer. The worst time to sell in the winter, typically January or February is the off-season. This also means that it’s the best season to buy to save money. Sellers will be more likely to accept fewer offers, and sellers will have fewer offers and are likely to start with a lower asking cost.
5. Partner With a Local Agent
Partnering with a local agent is a great way to save money and buy a house. Your Atlanta agent can help you . .
Analyze the market and homes to determine which are too expensive or underpriced. Find houses that offer great value as soon as they come on the market, or even earlier.
Negotiate a lower price, and a better deal
Avoid paying too much due to unfavorable contingents
More money-saving options
Ultimately, if you want to pay less, it pays to partner with a Atlanta agent who knows the local markets well. If your goal is to save money when buying a home in Atlanta, then contact us today at 678-337-1165!