How Can I Lower My Home Buying Costs?

With mortgage rates moving higher recently, buyers may be looking at the numbers and wondering if buying a home still makes sense. The good news is there may be more ways to lower the cost of buying than you realize.

At the Sandy Erickson Real Estate Team, we encourage buyers to look at the entire financial picture. Your down payment and mortgage rate are important, but financing programs and what we negotiate in your offer can also make a meaningful difference.

Start With the Right Financing Strategy

Our preferred lenders can help you explore different loan programs and strategies based on your finances, down payment, and the home you’re considering.

Some options may include:

• Rate buydowns to temporarily or permanently lower your interest rate and monthly payment (potentially for FREE).

• Down payment assistance for buyers who qualify for available programs.

• Lower down payment loan options that may allow you to purchase without putting 20% down.

• Lender programs and incentives that may provide credits or other savings depending on the buyer, loan, or property.

You may qualify for options you didn’t know existed, which is why talking with a knowledgeable lender early in the process can be so valuable.

Your Offer Can Save You Money, Too

Financing is only one piece of the strategy. Depending on the home and current market conditions, the Sandy Erickson Real Estate Team can negotiate for terms that may help reduce your costs.

Those could include:

• Seller-paid closing costs to reduce the amount of cash you need at closing.

• Seller-paid rate buydown to help lower your mortgage rate and monthly payment.

• Lower purchase price when the property and market conditions provide room to negotiate.

• Post-inspection concessions to help offset repairs or other expenses uncovered during the inspection.

Not every option will work for every buyer or every home. The key is knowing what opportunities are available and putting together the right combination of financing and negotiation strategies for your situation.

Before You Decide to Wait...

If higher mortgage rates have you thinking you need to put your home search on hold, it may be worth running the numbers first. A different loan program, rate buydown, seller contribution, or negotiated purchase price could change what buying looks like for you.

The Sandy Erickson Real Estate Team works closely with trusted local lenders to help buyers understand their options and build a plan before they start making offers.

Thinking about buying a home in the Twin Cities? Contact the Sandy Erickson Real Estate Team. We can connect you with one of our preferred lenders and help you explore ways to make your next home purchase more affordable.