According to The Ascent, the median sale price for a home in June 2020 was $295,300. If you’re like most Americans, this dollar value could very well be enough to make your future home your most expensive asset.

But is saving a few dollars here and there really worth it at this price point? Is it even possible to buy a house while still staying money-savvy?

If these questions sound familiar, you’ve come to the right place. Here are four ways that homebuyers can get the house while saving a few dollars along the way. 

Method #1: Get a Discount on Your Insurance

When you sit down with a calculator and add it all up, chances are that insurance costs will make up a hefty chunk of your budget when you’re a homeowner. The good news is that insurance doesn’t have to become the expense that makes you shake your head and think, “This bill is single-handedly preventing me from getting ahead.”. 

You can shop around for insurance providers that are offering better rates. If you have enough cash on hand to cover any sudden losses, you can also consider changing your deductible amount. 

In addition, taking steps to secure your home by installing a security system or pruning those walkway-obstructing bushes are just a few of the surprising ways you can lower your insurance costs. You might be surprised at how these relatively minor changes can help you secure major savings. 

Method #2: Have a Great Credit Score

Having a solid credit score can help you save money on your home purchase.


Because when all is said and done, lenders will review your mortgage application with a single question in mind:

“Will this person be able to pay us back?”

One number they’ll be relying on to answer this will be your credit score. If your credit report shows that you have a solid history of making payments on time, carrying low balances, and being an all-around rockstar with your credit, you can increase the odds of getting a “Yes!” to your application while also getting offered a lower interest rate. 

And when you’ve got a whole mortgage to pay for, every dollar counts. 

Method #3: Consider Looking At Properties That Have Been On the Market for a While

We know what you’re thinking. If you’re in an active real estate market and there’s a property that’s been sitting for months on end, that has to be a sign that the house is the problem, right? 

Maybe. But not necessarily. 


Because sometimes there are external factors that can lead to a house spending an extended period on the market.

Maybe there were improvements made between the first listing and the current one. Perhaps this particular house had the bad luck of hitting the market at the same time as a bunch of premium, A-List homes that buyers wanted more. 

But here’s the money-saving bottom line:

If a home has been on the market for a few months, the owner may be more open to hearing a lower-priced offer. And while there’s nothing wrong with not wanting your house search to be characterized by home-buying mishaps that cost you time and money, some of the best bargains can be found in listings that have been circulating for a while.

Method #4: Make a Larger Down Payment

The whole “Save up as much as you can when buying a house.” school of financial thought isn’t just a nice idea that someone made up for fun. It’s an approach that has major financial benefits. 

When you’re able to put down a larger down payment you can save major money in at least three ways:

  • You may be able to avoid having to pay mortgage insurance
  • You can take out a smaller loan amount 
  • Any extra cash that didn’t go towards the house can be the start of a substantial home maintenance fund

At the end of the day, this option might not be realistic for everyone. We get that. But there are still benefits to buying your house with as much money down as you can.

Here’s How You Can Save Big Money on Your Home Purchase

From handling insurance to watching your listings like a hawk, there are a surprising number of ways that you can save a substantial amount of money during your home search and beyond. Out of the list of money-saving homeownership strategies that we just gave you, which ones can you see yourself using during your home search?

Authored BY Moe Elmaleh


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