Saving on home costs

A recent CNN Money article provided advice for potential property buyers on how to save on their home costs.

To begin, potential homebuyers should diligently negotiate contracts with their contractors. With the real estate market declining, contractors have received fewer clients. Thus, they are now more willing to negotiate labor costs with clients. According to a recent survey, more than 25 percent of responding contractors claimed they would drop their prices by 10 percent.

Additionally, homebuyers should attempt to get the best interest rate available for a mortgage. Currently, the average rate for 30-year fixed-rate mortgages was 4.7 percent, which was down from 5.1 percent in February. Next year, the rate could jump to 5.8 percent, the Mortgage Bankers Association relays. Thus, finding the right time to take on a mortgage can make large financial differences.

Furthermore, consumers with higher credit scores have a better opportunity to receive lower interest rates. Thus, potential homebuyers should ensure they have attractive credit scores and clean credit reports. By consistently monitoring his or her report, a consumer may ensure no problematic or troublesome items appear that may unfairly reduce their three-digit numbers.