Buying a house can be an expensive endeavor – particularly if you don’t have a plan. But thankfully, there are plenty of tactics you can use to slash the price and avoid running through all of your cash savings in one fell swoop. Here are a few of our favorites:

• Carefully Consider Interest Rates

If you’re going strictly by interest rates, there’s never been a better time to buy a house than now. As a result of the pandemic and other related factors, interest rates have plummeted to near-record lows and paved the way for a new level of affordability. But even with low rates, you need to shop around and see what your options are.

“The interest rate is arguably the most important thing in a home loan, as a lower interest rate can save you thousands (tens of thousands even) of dollars over the course of the mortgage,” Savings.com.au explains. “While getting the lowest home loan interest rate you can is important, it isn’t the be-all-end-all, as it’s very possible a mortgage with a slightly higher interest rate might be more suitable to your needs.”

All factors must be taken into account when selecting a loan. The good news is that every lender is required to give you a standardized form so that you can quickly compare apples to apples.

• Consider a Shorter Repayment Schedule

While a 30-year loan comes with a lower monthly payment, you can pay off your balance faster with a 15-year loan. As a result, you end up paying far less in interest.

Let’s say, for example, that you borrow $200,000 from the bank to buy a house. The bank offers you a 15-year fixed-rate mortgage with a rate of 3 percent, or a 30-year fixed-rate mortgage at 3.2 percent. While the 30-year loan is roughly $700 less per month, you end up paying a total of $139,938 in interest over the life of the loan. With the 15-year loan, you pay just $60,761. That’s nearly $80,000 in savings!

If you can afford to swing the larger payments, you’ll come out way better with shorter loan terms.

• Shop Around for Insurance Rates

Shopping for home insurance is one of those tasks that you have to do. It’s not fun, but it’s a requirement (by the lender) and should be taken seriously. 

The tricky part about home insurance is that there are so many different providers, products, and terms. If you don’t shop around, you can overpay by a significant margin – potentially costing you thousands of dollars.

If you want to save on insurance, you should get multiple quotes from multiple companies. You also need to ask about different types of policies and deductibles. A higher deductible will save you more money (though you’ll have to make a larger payment to get coverage when something happens).

• Choose Location Wisely

Location is the most important factor in the value of a property. A builder could build the same house in Los Angeles and a small town in Mississippi and the first house could be worth $1 million, while the latter house is worth just $200,000. But it’s not just state lines that matter. Locations within an individual city or neighborhood can dramatically influence value.

One way to save money is to expand your search by one mile. If you’re willing to move just one mile further away from the desirable area that you were originally planning, you could see prices drop by 10 to 25 percent. And guess what? You’re still just a few minutes from the action. 

• Be Smart About Moving Expenses

Moving can be expensive. Whether it’s across the country or across town, you can easily pay thousands of dollars just to have someone load up a few furniture pieces and move them into your new space. As with other items on this list, get multiple quotes and negotiate for the best rates. 

Save Big on Your Home Purchase

A home purchase is not something you can afford to take lightly. Whether it’s the first home you’ve ever purchased, or you’ve been through the process more times than you can count, a real estate transaction can have a significant impact on your net worth and must be addressed with purpose and intentionality. 

By taking these tips and techniques into account, you can save thousands of dollars and give yourself a little breathing room with your finances.