Last Updated on April 19, 2022 by Kravelv
Finally, you have decided to go for it. You have been dreaming of it. It’s coming. Your new home is purchase away. You will have a place you and your family will call home. No more paying rent. However, you need to get things right. In particular, you need to purchase your dream home on a budget. But how do you purchase that dream home without messing your bank account? Well, keep reading. This article is going to dive into the tips and tricks for purchasing that dream home without breaking the bank.
Determine Your Budget
Settle for what you can afford. As a growing family, you probably have a lot of expenses to handle. While you may want to settle for a luxurious home, you really don’t want to get your heart on something that’ll only end up leaving you “house poor”.
Before thinking of a backyard pool, decide what you can afford. Make sure that your mortgage payment doesn’t exceed 28 percent of your monthly income. Again, your housing payments shouldn’t be more than 32 percent of your monthly income. You also want to make sure that your debt payments don’t exceed 40 percent of your monthly income. Once you’re certain about what you can afford, go ahead and start shopping around for homes that are within your reach.
Broaden Your Horizons
The newest homes aren’t always the best option. As much as you want a cozy home in the brightest neighborhood, your dream home can still be quite “old” but it’s located in the best neighborhood with an outstanding school district. Plus, investigate if there are other houses for rent in the vicinity.
Most new construction homes cost 20 percent more than comparable older homes. Purchasing an older could help you save substantial amounts of money and allow you to enjoy a bigger piece of the “dream house” than brand new ones.
Be Vigilant
To get the best home, you need to be vigilant. The more houses you see, the better your chances of landing the perfect one for your needs. You may also want to consider hiring an agent who isn’t afraid to confidently negotiate. Remember, this can get the sellers to get down by up to $10K or even $20K.
Make Numerous Offers
Most real estate investors observe the 100-10-1 rule. What this means is that you look at 100 homes, offer on 10, and only get one of them accepted. Submitting several offers will significantly improve your chances of getting a really good deal.
The Bottom-Line
Purchasing a new home a dream for many. Luckily, you are about to actualize it. However, did you know that you can be overpriced and end up quitting the whole idea of purchasing that dream family home? Worse still, you can end up overpaying. Avoid overpaying when shopping around for a new home. If you follow the above tips and tricks, you can be sure of securing that dream home without going too hard on your bank balance. Good luck!
