Choosing The Right Home For Your Budget
Everyone has their picture perfect home in their head, and have dreamed about it multiple times. What the outside looks like, what the inside looks like, the neighborhood that it’s in, and the city that it’s in. The reality of the situation when looking to buy your first home is, the best home for your situation might not be the perfect home quite yet. Not only this, but not properly budgeting for your first home could mean that you are setting yourself back for purchasing that perfect home in the future. Utilize these tips to make sure you choose the right home for your budget.
1. Choose The Top 3 Areas You Would Like to Live
The most important step of your home search is choosing where you would like to live. There is minimal point to finding a home you like, at a price you like, but that is in a neighborhood where you feel uncomfortable. Choose the city you are looking in, and then choose the top 3 areas you would like to live. This will ensure that you aren’t being too specific, but also that you will be in a place where you are comfortable, and that is in a good location to your daily activities.
2. Have a Detailed Budget
Just like every house is different, so is every person or couple’s budget and expenses. In order to be able to determine exactly how much you have to spend on a home, make sure that you are very detailed about your budget and monthly expenses. Knowing how much you have saved up, and how much you spend on a monthly basis will give you a solid ball park on where to start.
3. Know How Long You Plan to Stay
A very common mistake made by people is investing a bunch of money into their first home, when they have no intention of living in that area for the duration of their loan. There will be situations that come up where moving will be inevitable, but there is no sense in going way above your budget for a home if you think you might be moving in under two years. Be reasonable, and make sure that buying the house you are looking at makes sense for your situation.
4. Know When to Compromise
What are the ideal characteristics you are looking for in a home? Does the amount of bedrooms the home has mean more to you than the square footage of the basement? If you match your top qualities to the house, you will be ensuring your happiness level with the home. Seek aid from your financial planner as well. Knowing how a 30-year fixed loan will break down in your monthly payments will really outline how over spending and under spending will affect your monthly spend. In general, it is a good rule to lower the expectations for the condition of your home as well. You can get in a home for cheaper that needs a little touch up, but this will also allow you to put your own personality in the home, and will save you money.
Buying your first home is always a difficult decision, but it is also a very enjoyable one. Enjoy the excitement of the process, and don’t rush it. You will find a great home for the price range you are looking for if you make an educated decision and enjoy the process. Follow these 4 tips to go into the home buying process with a level head, and to ensure you not only make the best decision for your first home, but that you also make the best decision for your next home buying process as well.
Bobby Atkisson is a seasoned mortgage professional who provides high quality financial services to military members and veterans. With over 14 years experience in the lending and financial industry, his mission is to provide high quality mortgage programs with the most competitive interest rates. For expert advice and guidance on VA Home Loans and Refinance, contact Bobby today at 800-537-2050.