When shopping for your next home, there are certain things you can do to minimize your costs and maximize your ROI. This is an important aspect to save money. The following tips could make a significant difference in some of the costs you incur:
Tips to Help You Save Money
- Get pre-approved – you’ll get a letter telling sellers that you’ve been pre-approved and you’ll find out how much you can borrow. This will make it easier to budget for a home loan.
- Don’t make a hasty decision – FOMO (the “fear of missing out”) causes home buyers to make hasty, uninformed decisions that turn out to be extremely costly mistakes down the road.
- Determine whether an ARM or fixed-rate mortgage is right for you – although a fixed-rate mortgage is sometimes the more affordable option, you can also save money with an ARM or adjustable-rate mortgage.
- Consider a last-minute credit review – find ways to boost your credit score before applying for a mortgage. This can save you money by getting a lower interest rate. While you might think it isn’t possible to do this so late in the game, you might be pleasantly surprised.
- Try paying your home loan off early – if there isn’t a pre-payment penalty, consider making additional payments on the loan principal so you can pay your mortgage off early. You’ll save money by paying less interest.
- Document your income thoroughly – if your W-2 doesn’t show all of your income, be sure you report that additional income when applying for your home loan. Using your bank statements is the easiest way to do this.
- If possible, make a 20% down payment – even if you qualify for a lower down payment, you might want to rethink that and try to put as much as 20% down. This could lower your interest rate and eliminate PMI (private mortgage insurance). That is why it is best to pay as much downpayment as you possibly can.
- Work with a Florida mortgage broker – working with a mortgage broker instead of a direct lender is a great way to save money because they can shop numerous lenders for the best mortgage interest rate. This means they can find you better deals that you might’ve missed otherwise.
Buy a Home in Fort Lauderdale
As one of Florida’s top-rated mortgage brokers, when can help you save money when buying a home in Fort Lauderdale and throughout southern Florida. To learn more about saving money on your next home mortgage, Florida State Mortgage Group, Inc. at (954) 359-3000 at your earliest convenience. Their business representatives are available to take your calls.