Buying a home is a lifetime goal of so many people and it’s a dream come true to call yourself a homeowner. In the midst of all the excitement, remember to wipe the stardust from your eyes and understand the realities of homebuying.
New home construction Jacksonville FL, a fixer-upper in California or a manor in South Carolina, know what you can afford and understand the limitations of your budget.
- Your credit score is a big factor in pre-approval. Look into credit monitoring services and clean up your credit as much as you can.
- Know that what you are preapproved for by your lender might not be practical in a real-life mortgage. For example, if you have been approved for a home loan of $800,000 but can only afford a monthly mortgage of $1,500, you won’t be able to afford a house that expensive.
- Factor in added costs that you might not have considered like closing costs, home inspections, down payment and yes, paying your realtor.
How Much Home
You have your wishlist: vaulted ceilings, six bedrooms, a swimming pool and a mother-in-law suite. That’s all well and good, but know the realities of what your funds will allow.
- You may have to settle for less than you expected. Decide what you can and cannot live without. Can you swap the cathedral ceilings for your dream kitchen? Does a large garage trump maintaining a swimming pool?
- There are ebbs and flows in the housing market, so know in real time when is the best time to buy.
- Don’t assume that your realtor is the enemy if you’re unhappy with your limitations. You are paying them to help you find something you love and can afford. They want nothing more than to see you happily settled in the house of your dreams and are not trying to discourage you. Listen to their advice.
If you’re a first-time buyer, you are probably eager to start looking for your house. Understand what you can and can’t afford and be realistic during the process.