It’s always exciting when you have the chance to purchase a new home. The hope for a more comfortable future and the chance to grow roots offers a happiness that simply isn’t satiated in any other way. The key is to find a home that you can honestly afford.
You don’t want to run the risk of losing the stability you worked so hard to achieve, so make sure you watch your steps along the way. The goal is to find the home of your dreams, and here are a few tips to help you achieve your goal.
Figure out what you can afford
You can’t start hunting for homes within your price range until you know exactly what you can really afford. You could settle for a quick estimation based on your annual income, but it’s better to take a more thorough look at your finances.
While you’re saving for a down payment, play with your budget a bit. You will quickly get a picture of the amount you can truly afford to put out on a mortgage payment each month. Remember that the price of your home won’t be the only monthly cost of the property.
Talk it all out with professionals
Sometimes it’s just easier to let the professionals do what they’re good at doing, and pay a realtor to do all the hunting. You may want to hire a lawyer as well to make sure you get the most solid deal possible on your new home.
A financial advisor could also help you with the process of figuring out what you can afford. The price range of your search will directly affect how much house you get.
Location location location
Where a house is located directly affects the pricing of the property. Having a $250,000 budget doesn’t mean you have to get a tiny house in every location. Some places have really nice houses on the market for that price.
For instance, the median price point of a home for sale in Phoenix, Arizona is within the $250,000. If you travel just a few miles out of town, purchasing a condo in South Scottsdale will cost you closer to $450,000. That is quite a large difference for such a short drive.
Search properly for price point ranges
If you choose to go at it alone, you’ll need to understand how to properly search for your price range. If your max price is $400,000, for example, you don’t want to limit your home search to properties listed for $400,000 and below.
By limiting the search to $400,000, you will cut out the properties that are only slightly beyond your range. There’s always room to talk down a seller’s pricing, so don’t shortchange yourself.