How to Save Money on Homebuying Expenses
- 25 February 2026
- Munif Ali
Buying a house is expensive, and it’s not just because of the down payment and the monthly mortgage. Buyers also have to pay for closing costs, insurance, taxes, repairs, and even furniture. With all of these expenses piling up, you can end up spending too much money to get your dream home.
Knowing different homebuying budget tips can cut back on some expenses and leave you with more savings by the end of the deal.
1. Negotiate closing costs
Closing costs typically range from 2% to 5% of the home’s purchase price (Zinn, 2025). While it’s a steep cost, you are allowed to negotiate it. Some loan-related costs are flexible, and it’s worth asking your lender if they can offer any type of discount. Other lenders are willing, with some even offering incentives to attract buyers.
Still questioning how to save on closing costs? You can also ask for a ‘seller concession’ by requesting the seller to pay for a portion of closing costs. Some may agree since this will help close the deal faster and raise the home price slightly.
2. Shop around for home insurance
Another added homebuying expense is the homeowner’s insurance that covers you in case of theft, fire, or other disasters. Before choosing a home insurance plan, look at all your options. Scouting around is one of the helpful homebuying tips, since it can help you find the most affordable option with the best quality.
You can also qualify for different insurance discounts. Living in retirement or an area with a professional fire department can grant you lower insurance costs. The same applies to having improved home security features in your home, such as a smoke detector or a burglar alarm.
3. DIY maintenance and repairs
Some houses will require some repair and maintenance. You can consider doing some of the easier tasks yourself, as hiring a professional to do this will end up costing more. This is one of the most practical homebuying budget tips that can help you save a lot. Painting the walls, fixing knobs, and installing new appliances are some stuff you can do yourself.
In DIY projects, always be cautious of mistakes and errors in home renovation that could end in damages that will cost a lot of money to repair.
4. Buy second-hand furniture
You finally have the house, and now you want all the furniture that comes with it. But furniture is expensive, and buying all of them brand-new and high-end will eat up even more of your savings. Homebuying tips that aim to cut costs will advise you to consider second-hand options first.
You can find some good used pieces at thrift shops and online marketplaces. With resold items, you’re also free to negotiate, which can further lower prices.
5. Explore homebuying or assistance programs
If you’re a first-time homebuyer, there are many assistance programs that can help you lower costs. These can offer down payment assistance options and lower loan rates that can save money and put more towards your mortgage savings.
Though it can take some effort to find and apply for these programs, it is one of the most helpful homebuying tips you should take. They also have more flexible requirements and cater to individuals with low income or poor credit.
6. Look at tax deduction options
Once you’ve settled into your new home after finalizing the deal, you continue to pay for your monthly mortgage payments and your yearly property taxes. Your property taxes are calculated based on your property value. Holding off on making any major changes, such as a pool or deck, can help prevent an increase in taxes.
You may also qualify for certain deductions if you fall into certain categories, like veterans, older adults, persons with disability, and others. These tax deductions can be put into your mortgage savings instead.
Your dream home starts with the right partner. At Pacific Playa Realty, we create communities and connections. Let’s make your vision a reality with a team you can count on.
Key Takeaways
- Homeownership can cost a lot in closing fees, property taxes, insurance, and other related expenses. Knowing different homebuying tips can lower these costs.
- Exploring different options for home insurance, assistance programs, and tax breaks can save money.
- Applying homebuying budget tips such as doing DIY repairs and shopping second-hand can ultimately put more money toward mortgage savings.
References:
- 8 Tips for Lowering Your Property Tax Bill. (2024, August 20). Investopedia. https://www.investopedia.com/articles/pf/07/property_tax_tips.asp
- 12 Ways to Lower Your Homeowners Insurance Costs. (n.d.). Insurance Information Institute. https://www.iii.org/article/12-ways-to-lower-your-homeowners-insurance-costs
- Catmull, J. (2024, June 20). 5 Tips For Cutting Costs During The Homebuying Process. Forbes. https://www.forbes.com/sites/jaimecatmull/2024/06/20/5-tips-for-cutting-costs-during-the-homebuying-process/
- Zinn, D. (2025, February 21). How to lower closing costs: 6 negotiation strategies. Bankrate. https://www.bankrate.com/real-estate/how-to-negotiate-closing-costs/#grants