As we round out the checklist of ways to minimize your monthly payment on your real estate, we finally get to covering strategies for when we’re making an offer to buy the property.
Again, this is a shorter list than strategies to talk to your lender about, but it is a little more involved than the really short lists for how to use other property you own and searching for homes.
How to Minimize Your Monthly When Making Offers to Buy
- Even if the seller has not said they’d be willing to pay seller points or buy down the loan, some may be willing if we ask when making the offer. Ask James (with the help of your lender so we know the actual interest rate you can buy down) to work through the math with you.
- Offering less than asking price is one way (although not always the best way) to reduce your monthly payment.
- Asking for seller to pay points and/or seller to pay closing costs may also reduce your monthly payment. This can often be more significant in terms of monthly payment savings for the same dollar amount than getting a reduction in price.
- Is the seller’s loan assumable and at a better interest rate than you could get from traditional loans now?
- Are you able to wrap the seller’s existing loan and get a better interest rate than traditional loans now?
- Can you buy the home subject to the existing financing?
- Can you buy the home on an installment land contract at an interest rate lower than traditional financing?
- Can you bring in private financing?
- Consider paying closing costs out of pocket instead of financing them.
See also How to Minimize Your Monthly When Making Offers to Buy for additional detailed info.