Costs You Shouldn’t Cut Corners on When Buying a New Home
Buying a New Home
When you’re getting ready to buy a new home, it’s only natural to try to save money in every possible way.
Given that the purchase will already likely cost well over $100,000, any amount of savings can help.
With that said, there are some parts of a home purchase where you shouldn’t try to cut corners.
Here are four costs you shouldn’t try to skimp on during the home purchase process.
Home Inspection
A home inspection is one of the most important parts of buying a piece of property.
Your inspector’s job is to identify any and all issues with the house so that you can make an informed buying decision based on its true condition.
Waiving the home inspection or hiring a cut-rate inspector is almost certain to backfire.
While you may be able to negotiate an arrangement in which the seller pays part of the inspection cost out of the price of the house, it’s an extremely bad idea to try to undercut the expense.
Moving Services
Once you actually purchase a house, you’ll need to begin moving into it.
If you plan to hire movers, don’t try to go for the cheapest option.
Professional movers earn their money by treating their belongings with care and respect, whereas budget movers are more likely to break or damage them.
Hire a good moving company and pay a fair rate, and you’ll most likely have no problems getting your belongings into your new home.
Home Insurance
Home insurance is one of the most important things you can have as a homeowner.
By protecting you from unexpected damages and liabilities, home insurance can provide you with peace of mind.
When shopping for homeowner’s insurance, you should get quotes from multiple companies to get the best rate.
What you shouldn’t do, though, is skip coverage in order to save money.
The wrong home insurance policy can leave you exposed to substantial financial risks if something goes wrong.
Your Down Payment
Thanks to mortgage products and FHA loans that require low down payments, many home buyers try to reduce their initial costs by putting only the bare minimum down.
While this may seem like a good idea, it actually forces you to finance more of the purchase price and pay much more interest over the lifetime of the loan.
The more you can put down on your home, the less money you’ll lose to interest payments over the next 15 to 30 years.
Although it may be tempting, trying to cut corners on these expenses is never a good idea.
Accept these costs and pay them as required, and you’ll have a much smoother home purchasing experience.
Share this:
Category: Housing
