Negotiation is important in a real estate purchase and is easier if the buyer is prepared. A prepared buyer knows what they need, want and can afford, based on the pre-approval process. Requesting a written Comparative Market Analysis (CMA) will  help the buyer. A CMA lists other homes in a neighborhood that have sold and their selling price, as well as current homes for sale. For the initial investment, a buyer may request that the seller pay some of the closing costs or ask someone to “gift” the money. Shopping around on home insurance and choosing a loan that requires a low down payment can also reduce up-front costs. 

To reduce monthly payments, a buyer may look for a loan without monthly mortgage insurance premiums. Finding out what is tax-deductible, such as interest payments on a primary residential mortgage and choosing an adjustable rate mortgage minimize monthly payments, as well. The buyer should try to lock in a low interest rate about a month in advance.