Month: August 2021

For most people, purchasing a home will be the largest financial transaction they ever make. As such, it is extremely important that you manage to stay within your budget. After all, the amount of money you spend will directly impact your finances for the next 10-20 years. 

Luckily, there are some easy tips you can follow, in order to keep things under budget, such as:

Establish a firm budget and communicate it to your real estate agent.

Before you can stick to a budget, you will first need to come up with a budget. Once you have decided what that number will be, it is important that you make it firm. This means, don’t tell your real estate agent that your budget is “around $300,000” or “$300,000-ish” if your actual budget is $275,000. By telling them exactly what you can afford, they can find you houses that make sense for you.

Avoid looking at out-of-budget homes.

When looking through your home purchase options, try to avoid looking at houses that are out of your budget. It can be very easy to convince yourself that it is worth it to pay an extra $20,000-$30,000 for a want vs. a need. However, if you can’t afford it, then you are just going to be torturing yourself unnecessarily. Stick to homes that you can afford.

Look at houses that have been on the market for a while.

Homes that have been on the market for a few months (or weeks in a seller’s market), can sometimes offer some excellent value. Because sellers will be anxious to complete a deal soon, they are often willing to negotiate on the terms of the deal. If you play your cards right, you can potentially negotiate thousands of dollars off of the home’s purchase price.

Ultimately, whether or not you can stick to your budget will come down to your level of self-control and willingness to negotiate. By following the advice contained in this article, you will be giving yourself the best possible chance of finding an excellent home that you can comfortably afford.

We’re here for you.

We understand that the home buying process is complex and filled with emotion. However, my goal is to provide you with comfort and reliability, as you’re navigating through the highs and lows of the real estate market, with the ultimate goal of finding your new home that fits your needs. Schedule a no-obligation first meeting with me here.

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There are a lot of false presumptions regarding the requirements for purchasing a home. For some, the dream of homeownership remains just that, a dream, due to some common myths. 

While some misconceptions were previously correct, many are no longer relevant today. With the facts, dreams can turn into reality. 

You must have perfect credit

Having great credit does make financing a home easier, and allows for lower interest rates, but those with less than perfect credit can still get financed. Several sites provide credit scores free of charge for those unsure of their score.  

If you have a credit score of at least 580, financing is possible. For those with a score lower, there are steps you can take right now to work on repairing or creating credit, such as paying your bills on time, keeping balances below 30% of available credit, not opening new credit cards or applying for new loans, and working on paying off debt.

A large down payment is required

The mere thought of coming up with a substantial down payment is intimidating for buyers of most income levels. For some, taking years of saving to meet the down payment requirement seems daunting. Since most conventional loans require a down payment, many homebuyers think there is a down payment requirement for all loans, which is not always the case. 

There are ways to purchase a home with zero money down. Homebuyers may be eligible for government-backed loans that require little to no money down, zero or reduced closing costs, and a few additional incentives to homeownership. 

These same government-backed loan programs are very lenient on credit scores and have assisted countless homeowners. 

The process is difficult to understand

Purchasing a home is overwhelming for some, and it is the most significant financial transaction of most people’s lives. Luckily, there is an entire profession ready to assist. Real estate agents discuss the process from start to finish, often providing a detailed buyer’s guide whether you decide to work with them or not.

In working with a real estate agent, you will leverage the wealth of knowledge and network your agent/broker possesses. They know the ins and outs of the process, and will even refer reputable lenders to assist in getting you the financing you need. 

Knowledge is the key to a successful transaction. Getting the facts right and working with real estate professionals is the first step to dispelling myths and becoming a homeowner. 

If you have questions about the home buying process in the Lakeville or Apple Valley area, please reach out to me. Let’s discuss your goals and help make your dream of homeownership a reality.

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