Worried about being able to afford the new home you’ve always wanted? Here are five simple yet powerful tips that can help you save money on your new home now and well into the future.
Set a Budget and Stick to It
You won’t know where to aim if you don’t have a target. That’s why, first and foremost, you should establish your budget. By going into your new home shopping experience with a clear understanding of your personal financial status and goals, you’re less likely to overspend.
Decide How Much Space You Really Need
How big your home needs to be varies greatly based on the size of your family and how you plan to use the space.
Do you need an extra guest room if you don’t plan to have guests stay often? Or a large, formal dining room if you’d rather just share meals in an open kitchen? Weigh the options and consider that just about every homebuilder will work with you to find the perfect design and can adjust the floorplan to meet your needs.
By choosing a stylish, flexible home design that gives you everything you want, you’re well on your way to getting your home at the price you need.
Consider Energy-Efficient Options Carefully
One of the biggest benefits of buying a new home instead of a resale home is the fact that many energy- and money-saving features come built in.
Low-e windows, efficient furnaces and programmable thermostats are included standard in many new homes, but most homebuilders will offer additional efficiency options such as solar panels, high-efficiency water heaters, etc. Although these options will likely add to the total price of the home, the monthly savings incurred can offset the upfront costs and even pay for themselves in the long run.
Have a builder sales agent walk you through the savings and potential tax benefits of each energy-efficient option available and determine which ones fit best in your short- and long-term budgets.
Shop Around for the Right Mortgage
Choose between a fixed-rate and adjustable-rate mortgage and decide the length of your loan term. Once you do that, you can start shopping around for rates from lenders.
Different lenders will offer different prices, so you’ll want to talk to a variety of them to understand what sort of rates, fees and down payment you can expect. Be ready to negotiate and don’t be afraid to walk away from a lender if the mortgage they offer doesn’t fit within your budget.
Already in the market for a mortgage? Here are some other great tips provided by the Federal Trade Commission.
Shop Around for the Right Builder, Too
You probably have an idea of where you want to live, so do some research to find out which homebuilders offer homes/communities in that area. Each builder is different, and their prices, offers and incentives will often vary greatly throughout the year.
Our online search tools make it easy for you to find all the builders in a given area — just enter your price range, options and desired location to get started!