Buying a home, of course, is a major investment. In fact, buying a home may end up being the largest investment you will ever make. Saving money on a home loan is highly advisable and is simpler than you may reckon.

When you apply for a home loan, make sure you have a high credit score. Higher credit scores mean lower interest rates on home loans, which will save the buyer thousands in interest over the term of the loan.

Check your credit report before you apply. This is also common sense. The credit report will inform you on how excellent your credit score is and if there are any mistakes in the report. Remember, credit reports are the primary way banks can choose if you are responsible and trustworthy or not.

Pay down your credit card balances and make your payments on time. This behavior will improve your credit score and help you maintain a high score so you can get the best home loan rates.

Always shop around and gather more than one insurance quote. This may sound like a nuisance, but it really helps you save money in the long run. Lending is a competitive business, which means lenders will compete against each other for your service. Competition equals lower rates for you, the home owner.

It’s always advisable to question the seller to pay your closing costs. Selling costs are expenses paid when you obtain the home loan. The selling costs can range between 3-7% of the total home’s value, including points, taxes, title insurance, financing, and other settlement costs.

If you question the seller to cover your home loan closing costs and they refuse, then question the lender to negotiate a lower rate on the closing costs with you. This is also something you should inquire about when shopping for the best home loan rates because closing costs can add a lot of money to your mortgage costs.

While buying a home and obtaining a home loan can feel overwhelming at times, there are ways to cut costs and save money on your home loan. Do your homework and earn the best grade possible!

Tom Martens is the content coordinator for South Arica?s leading Homeloans portal which amongst others offers Bond origination services for all major banks.

James Bond has turned into an international icon for his bravery, quick wits, and perilous actions. While every man wants to be James Bond in one way or another, it’s vital to not share the same approach when dealing with bonds, although they take after the same name.

The problem starts with the costs associated with buying property and the high risk nature of a home loan or bond. Owning property is considered a future investment, not a quick way to make money.

The actual costs of taking out a bond in relation to the total costs involved in the act of buying a property are not high.

There are five different bond related charges that will apply every time you buy property. Which include registration fees, conveyance fees, value added tax, and inflation fees prior to the bond.

The fees are covered, but should exceed a rate of more than 3% of the total cost of the property. If the property appreciates in value like it should, the cost will be recovered within the first year or so.

Know that bonds are top-heavy. By this I mean that when you take out a long term bond, the first third of the bond’s duration is directed towards interest and not principal. So, when you sell back property quickly, you lose a lot and still owe a ton of principal.

For example, buy property at $600,000 and sell back within five years. If you’ve only paid $30,000 in principal, which is a likely scenario, you still owe $570,000. Can you cover that?

The bank also must find ways to cover a large bond. Often they borrow from a central bank. If the small, more local bank hits a rough patch, it will request some relief from the central bank. The central bank may allow the bank to enter a “grace” period with the bond, which means they will pay principal and no interest for a pre-defined amount of time. This does not come without penalties though.

Costs associated with a bond are relatively low as long as the borrower takes a long term view of property ownership and is able to meet the commitments throughout the duration of the bond.

Graham McKenzie is the content syndication manager at BondCredit.co.za South Africans leading Bond Originator