Finding your dream home is one of the most exciting decisions in a home buyer’s life. But what can you do if you find it and the price is just a bit out of reach? If you’re determined to stretch a buck you can make your budget mesh with your fantasy.
Negotiate the price
Everything is always negotiable you’d be surprised at what sellers, agents, and buyers alike will compromise on. You might not get what you want, but you never know—the seller may be extremely motivated because of a move, work relocation, or divorce, for example. They may just be looking for a fair offer and would be willing to sell to you for a little less if they can close faster as a result.
Work the programs
There are a wide variety of programs that help people achieve their dream of home ownership. And contrary to popular belief, you don’t necessarily have to be low-income to quality.
You may discover a first-time home buyers program that can make your home of choice more affordable by providing assistance with the closing costs or the down payment. If you’re considering a fixer-upper, you can look into financing it with a renovation loan, which can enable a home buyer to make desired improvements and have them financed into the mortgage.
Many people young blindly ask for a 30-year fixed mortgage when they could be better off if they considered other options such as a five-, seven-, or 10-year adjustable-rate mortgage.
We live in a much more transient society than we did 20 years ago, and people all too often pay for the ‘security’ of a 30-year fixed loan when, in fact, they will likely be selling or refinancing in less than 10 years. Looking into a different loan type can translate into lower payments upfront.
Home buyers can also look into creative options for their private mortgage insurance (e.g., having it paid by the lender or seller), which can help you achieve a lower monthly payment.
Check for ways this home itself could save you money
Sometimes that more expensive house payment will allow you to save in other areas. For example, maybe it makes your commute shorter and less expensive, or it’s in a better school district so you no longer have to foot expensive private school tuition. Another possibility: The energy efficiency of a newer home can reduce your utility bills and might make up some of the cost difference of an older home.
Contact me today to explore your mortgage financing options!