By: Frayed Passport
A fair number of our digital nomad, semi-retired, and other frequent traveler friends have been opting to buy homes to help generate extra income for their journeys. It’s a huge step, and one that can majorly pay off over time—and if you’re ready to take the plunge, then this will definitely be an exciting time!
…It’s also an expensive time.
But you can make it a little less so by learning more about the home-buying process and a few ways to save money.
Let’s jump in!
Lessen Your Mortgage Expenses
Unless you’re independently wealthy, you will probably need to take out a mortgage to afford a new home. Since home-buying is so cost-exorbitant, you want to find every way to save money on mortgage fees.
The first step in the mortgage process is to shop around for a reputable lender who will give you the best options. Always read through the fine print in its entirety to ensure you understand your loan parameters, potential penalties, and the possibilities for interest rate increases. When you are educated, you can go into the negotiation process well-prepared to help you save money.
Schedule a Home Inspection
Photo by Alena Darmel on Pexels.
Home inspections can be pricey, and a good one may seem out of your budget. But this is one thing on your home-buying checklist that you should never forego in the interest of saving money—it can seriously help you figure out what needs to be addressed now that’ll affect you in the long-term (and of course can alert you to major issues that could be a deal-breaker). Always use a licensed and vetted home inspector with experience in the type of dwelling you are interested in.
A home inspector will assess everything inside and outside the structure to look for old damage and previous repairs. They will review wiring and plumbing systems to ensure they are within the code guidelines. Inspectors are essential for any buyer to fully understand whether a house is in good condition or will drain their funds with necessary or required repairs before a loan is issued or it is livable. If you’re planning to rent out your space, knowing all issues and necessary fixes in advance will give you more peace of mind, and help ensure your space is safe for whomever’s occupying it.
Read our guide to funding your travel by putting your home on AirBnB
Wait to Furnish the Home
Rethink the need to fully furnish or decorate your new home as soon as it’s officially yours. The beauty of a new dwelling is that you get to experience the flow of the space while you are living in it—and if you’re looking to rent it out, you may have different considerations for what to prioritize when filling out each room.
If you rush out to buy the latest and greatest or most beautiful dining room set on the market, you may realize that it does not fit the space as you had hoped, and you might be stuck with it. And even worse, if you have a tenant who (hopefully only accidentally) damages the set, it can be a huge pain to replace part or all of it, especially if it’s expensive or difficult to find.
To start, move your current furniture and decor with you. When these items are in a new room and arranged to fit the space, you might be amazed at how well they go with it—and even if they’re not right for your new home, you will still have a bed to sleep on while waiting for sales so you can purchase at a great price!
Another option is to refinish your current furniture to make it last longer and give it a refresh. Watch this video to learn how:
Now that you have some new information, it is time to start really looking at what you’d like out of a new home. Do your research and work with the best lenders and inspectors—no matter where you choose to move, you deserve the home you want, and by making smart moves and advocating for your dreams, you can save money, get peace of mind, and move on to a big bright future!
Featured image by Roselyn Tirado on Unsplash