Buying a home is a major milestone that can offer significant advantages; it can provide a space to call your own, long-term stability for you and your family, an opportunity to build equity, and a myriad of other benefits. There’s also a lot to learn along this exciting journey. If there are topics such as insurance or closing costs you’re not familiar with along the path to homeownership, there are numerous strategies you can implement to help you reach your destination with greater ease. Whether you’re just beginning your search or you’re looking for ways to make homeownership more affordable, these practical tips can guide you on how to afford a house with confidence.
1. Explore quick move-in options*
When looking for a home, timing can be crucial. If you want to snag the current interest rate before it changes and don’t want to wait months for the finished product, consider quick move-in homes—also referred to as “inventory homes“ or ”spec homes.” In addition to being able to actually see the home you’ll be living in and getting into your new abode on a shorter timeline, buying a quick move-in home can help you gain a clearer understanding of your mortgage payments so you can plan and budget more effectively for life a s a homeowner.
2. Consider a paired home
Many first-time homebuyers are often concerned about costs (and time!) associated with taking care of their yards and properties once they’ve moved in. The solution? Paired homes! Smaller than traditional single-family homes, these houses offer more manageable lawns and other low-maintenance features that promote a streamlined lifestyle that can save residents both time and money. With a paired home, you can stop paying that landlord and start building equity—without all the outdoor maintenance tasks!
If this is a route you’re considering, our unique Urban Collection™ offers inspired paired homes with designer details and ample space for entertaining. This popular collection also features designer-curated finishes and comes at an appealing price point—a benefit as you’re exploring how to afford a house!
3. Look beyond costly urban areas
While buying a home in a bustling metropolitan area can be enticing, home prices in major cities can often be high due to increased demand and low inventory. Homes in suburban or rural areas, on the other hand, are typically more affordable and offer more square footage than their urban counterparts. Smaller towns and suburbs may also offer financial advantages, such as lower property taxes and less competition for homes. Plus, with so many more work-from-home positions available these days, being close to your downtown office is much less of an issue than it used to be.
Many suburban and rural areas offer appealing amenities as well. You might find communities that feature parks, trails, recreational centers, and even local events that can help you get to know your neighbors and form friendships. If affordability is a primary concern, looking at homes in less densely populated areas could provide you with the space and comfort you desire at a lower price point than some urban neighborhoods.
4. Take advantage of special offers
If you’re buying a home for the first time, you might not be aware of potential savings opportunities. Veterans and active military personnel, for example, can take advantage of VA loans, which often require no down payment and feature competitive interest rates.
Additionally, be sure to keep an eye out for special offers from homebuilders. These promotions might include discounts on closing costs, reduced pricing on upgrades, or even assistance with down payments. Some homebuilders offer packages designed specifically for first-time buyers, so be sure to inquire about any current offers that could make homeownership more affordable. Be sure to do your research about financing and always ask about special offers or deals that can help you save in the long term.
5. Increase your down payment
One of the best ways to lower the cost of homeownership is by making a larger down payment. While the typical advice is to put down 20%, this isn’t always possible. However, contributing as much as you can to your down payment can reduce both your monthly mortgage payments and the total interest you’ll pay over the life of the loan.
In addition to lowering your monthly mortgage costs, a larger down payment may help you avoid the need for private mortgage insurance (PMI). PMI is usually required if your down payment is less than 20%, and it can add hundreds of dollars to your monthly payment. By saving for a larger down payment, you can not only avoid PMI but also reduce the overall cost of your home.
If saving for a larger down payment feels daunting, consider asking family members for help or pursuing other creative options, such as saving your tax refund or opening a high-yield savings account. Additionally, setting up a dedicated savings account or seeking professional advice on budgeting and saving for a down payment can help you reach your goal faster.
6. Improve your financial standing
Getting in good financial shape before embarking on your house hunt is definitely an advisable course of action. Of particular importance is your credit score. This score directly affects the interest rate on your mortgage, and a higher score can lead to a lower rate, potentially saving you thousands in the long run. Before applying for a mortgage, take some time to improve your credit score. Start by paying down any existing debts, checking your credit report for errors, and ensuring that all your payments are made on time. You can also work on building a stronger credit history by using credit responsibly. Even small changes, such as paying down credit card balances or consolidating loans, can have a positive impact on your credit score and therefore, your mortgage rate.
7. Compare mortgage offers
Mortgage rates and fees can vary significantly between lenders, so it’s important to shop around and compare your options. When reviewing mortgage offers, don’t just focus on the interest rate—be sure to look at the annual percentage rate (APR), which includes both the interest rate and any associated fees. Even slight differences in rates or fees can add up over time, so finding the best deal can result in substantial savings. Getting pre-approved by multiple lenders will typically help you identify the most competitive offer.
If you’re currently in the market for a lender, consider checking out our affiliate, HomeAmerican Mortgage (NMLS ID 130676); see their licensing info here). Their professional team is dedicated to helping buyers secure competitive mortgage options tailored to their unique financial needs.
8. Go green & save green
Sustainability is not just good for the environment—it can also be great for your wallet. Homes with green features, such as high-quality insulation, energy-efficient windows, and ENERGY STAR® appliances, can help lower your monthly utility bills. Eco-friendly homes often have lower operating costs, which can make them more affordable in the long term than older, less energy-efficient homes.
In addition to saving you money on utilities, homes with green features are also typically more comfortable to live in, maintaining better temperature control and reducing your environmental impact. Furthermore, they tend to have higher resale values, which can be a bonus if you plan to sell in the future. Going green can save you both money and energy, making your home more affordable and sustainable.
Becoming a homeowner requires careful planning, research, and smart financial decisions. While buying a home may initially seem a bit intimidating, by using the tips outlined here, you can make the process more manageable. We hope the strategies we’ve shared in this article can help you learn how to afford a house. By adopting a strategic, careful approach, the dream of homeownership is within reach for most anyone willing to put the work in. Happy house hunting!
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