Staying on budget can be quite a challenge if you’ve never had to watch what you spend before. In home-buying, a house may be the most expensive purchase you’ll ever make. But one question holds the key to home-buying success: How much home can you afford? And how sure you’ll be staying on budget when buying a home!
In this blog, we’ve collected some helpful tips on how to stick to your budget when buying a house:
When you’re pre-approved for a mortgage, your bank determines how much they think you can afford to spend on a house. Go online and use a mortgage calculator – after you enter a sale price, a loan term, and interest rate, the calculator estimates your monthly payment, including homeowners insurance, property taxes, and private mortgage insurance. This can provide you with a good estimate of how much you can afford to pay based on sales price, but don’t stop there. Research whether there are other expenses you’ll need to work into your budget after buying a home.
Good agents respect your finances and only show you homes you can afford. When working with a real estate agent, it’s important that you communicate your budget clearly, emphasizing the need to stay within that budget.
Rather than obsessing over the fact that your friend bought a house with an outdoor kitchen, offer your congratulations, and then get excited about what your $250,000 budget can do for you. Maybe you’ll have four bedrooms instead of two, or you’ll have a gas oven instead of an electric one. Then, think about the ways you’ll benefit from staying within your budget, such as maintaining a healthy vacation or retirement fund, or starting a college education fund for your kids. Never compare!
If you get caught in a bidding frenzy, you could end up spending more than you want. Decide how much you’re willing to pay for a particular house in advance, and resist the urge to exceed that limit. In other words, be willing to walk away and focus on staying on budget when buying a home.
Even if the seller isn’t willing to drop the price, there are still more opportunities for negotiation when a home has been on the market for months. If you can identify the reason the property hasn’t sold, then you can ask the seller to reduce the home’s asking price or provide a cash allowance for the fix.
Now that you know the secret to being a happy homeowner, it’s time to go out and get the most home for your money! All you need is an expert negotiator by your side. A buyer’s agent brings your best interests to the table so you can be staying on budget when buying a home and gets the best deal! Remember if you don’t know how to resist consumerism and you simply have no idea of how to stay on top of your finances, get the help of a professional agent, like CPD Homes along with our partners at Keller Williams Greater Cleveland – The WLee Team, we drive success and arm you with the knowledge to make the best decisions and save you valuable time, money, and stress. A brief phone conversation with us may be life-changing. Call us now and we are more than willing to assist and guide you, as we agents can help make your dream home come true! You may reach us at 216-282-4332. You may also reach us at this link – www.cpdhome.com or like us on Facebook. We’ll be glad to talk with you!