Tips For First Time Home Buyers in Austin

Posted by Brad Pauly on Tuesday, February 7th, 2023 at 4:19pm.

Are you dreaming of owning a new home in the vibrant city of Austin? If so, you’re not alone—Austin is one of the fastest-growing cities in the U.S., and with so many things to do in it, it’s no surprise that thousands of people want to move here. That being said, buying a house in Austin can be expensive and your largest investment, so it’s important to have a plan in place to afford the purchase. In this blog, follow along as we share the best tips for making your purchase more affordable and provide you with the information you need to make your dream of owning a new home in Austin a reality.

Consider Interest Rate Buy-downs

Interest rate buy-downs are a great way to reduce the interest paid on a home loan. Here’s how they work: The borrower (you) pays a one-time fee in exchange for a lower interest rate from your lender, typically at closing. The one-time fee is usually expressed as a percentage of the loan amount and can range from 0.25% to 2.5%. By paying this fee upfront, you can save tens of thousands of dollars (or more) in interest over the life of the loan. Interest rate buy-downs are a great strategy for homebuyers who may not have the funds available to make a large down payment or who may be taking out a loan with a higher than average interest rate. 

Work With New Home Builders

Another way that first time home buyers in Austin can save on a new home is by choosing to work with new home builders. New home builders can offer creative incentives like a decoration or home furnishing credit, which can help to make the overall home buying purchase more affordable. In addition, new home builders tend to want to promote sales in the early and late stages of a home community, and often offer discounts and other incentives to buyers in order to increase the number of homes sold in the area. By taking advantage of these incentives, you can save money on your purchase and make the dream of homeownership in Austin more achievable.

Something to note: At Pauly Presley Realty, we’ve seen that some house builders in Austin are offering their in-house lenders interest rates under 4%. This can be a great option for first-time homebuyers especially, as it means you can secure a lower interest rate than you might otherwise get from a traditional lender—making your home purchase more affordable in the process. Additionally, in-house lenders may also offer other incentives such as no closing costs or down payment assistance, which can further reduce the cost of your purchase. 

Find Roommates

Looking for a straightforward, no-nonsense way to save money on a new house? Here’s one: buy a home and find roommates. It’s an age-old strategy for a reason: it works! By living with roommates, you can split the cost of the mortgage, property taxes, insurance, and other costs associated with buying a home, which can significantly cut the cost of owning one—making your first time purchase more affordable. 

Not sure how to find roommates in Austin? Start your search with these helpful resources:

  • This website allows you to search for potential roommates based on your location and lifestyle preferences, making it a handy tool in your roommate search. 
  • Craigslist: Craigslist is another great resource for finding potential roommates. You can search for roommates based on your area and post ads seeking potential roommates.
  • Facebook Groups: There are many Facebook groups dedicated to helping people find roommates, especially here in Austin. You can join one of these groups and start messaging other people who are looking for roommates too.

Work With A Professional Realtor

Professional Realtors can help you save money on a new home in many ways—some of which you may or may not expect. While a Realtor will certainly provide valuable guidance throughout the home buying process and help you find the right home for you, they also negotiate purchase price and seller concessions which can make a big difference. 

A professional Realtor is an invaluable resource for first-time home buyers in Austin, and, at Pauly Presley Realty, our expert Realtors are here to not only help you find a home, but save on it too. Contact us today to find out how we can help you save on the home of your dreams!

Ready to buy your first home in Austin? Check out our first time home buyers guide to find out everything you need you need to know to secure the home of your dreams!

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