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How to Stay Under Budget While Looking for a New Home

On Behalf of | Apr 11, 2018 | Firm News |

Hoping to buy a new home but unsure if your budget will allow it? This post can help you find the perfect home while staying within your budget!

Tips to Help You Find the Perfect Home for Your Budget

Many renters would love to own their own home, but the money needed for such a large investment may scare them away. This doesn’t mean owning a home is impossible, it just takes a bit of saving and some money smarts. This post can teach you some tricks to stay within your budget when searching for a new home.

Be Realistic About How Much You Can Afford

When you’re looking for a new home, it’s a good idea to start off by creating a realistic budget. This will let you know how much you can afford to spend and can help guide your search more efficiently. But, how will you know how much you can afford to spend? You will have to take a look at your finances first and be honest about your spending habits. Start by taking your monthly income and subtracting your monthly expenses from it. Include things like groceries, phone bills, and anything else you pay for on a monthly basis. The amount you’re left with isn’t how much you can spend on your mortgage each month because it will leave you unable to take care of other expenses that aren’t things you worry about monthly, such as buying school clothes, car maintenance, etc. You also want to be sure you’re leaving some money in your savings account for a rainy day. Factor all of this in and it will give you a clear idea of what price range you should focus on when searching for a new home.

Look for Professional Help

We know that hiring a real estate agent can sound like an unnecessary expense, but their professional experience can make a huge difference in your home search. Since they’re connected to other agents, they often have more leads on homes that are just appearing on the market. This means that they can help you find a home that fits your budget before other buyers even know it’s on the market. Not only that, they can also give you professional advice along the way and help you take care of tricky steps, like making an offer and negotiations. Having a professional advising you during these steps can make all the difference in terms of how much you end up spending or saving.

Balance Your Wants and Needs

Before starting to look at homes, be sure your wants and needs are clear so that you end up purchasing a home that you really want. While your needs should be met by the home, your wants should be something you’re willing to compromise on or negotiate. Needs include things like the number of bedrooms you need to house your family comfortably, having a yard if you have a large pet, or being able to easily access your front door if you’re in a wheelchair. Wants are things you would love to have but don’t necessarily need, such as a swimming pool, an outdoor kitchen, or a brand new kitchen. Be open to compromise on your wants, especially if it means additional savings.

As you look for your new home, keep in mind that you will also need to protect your investment with title insurance. Purchasing title insurance will help you have a bit more peace of mind when you start making the home your own. To learn more about why title insurance is a must, contact Home Key Title at (508) 475- 5502.

Remember to Factor in Hidden Costs

Something many home buyers forget to include in their home buying budget is hidden costs. Buying a home doesn’t only mean you have to pay a mortgage every month, there are also costs associated with the actual purchase. To avoid being surprised by these, do a bit of research on things like closing costs, the different types of insurance you will need, taxes, and other expenses associated with the purchase of a home.

Spend When Needed

There are certain things most people would love to skip over in order to save a bit of money, but doing so may cost you more in the end. For example, don’t skip the home inspection just because the home looks like it’s been well taken care of over the years. Doing this may result in you buying a home that is barely being held together. In the end, you will end up spending more on repairs and maintenance than you would have if you had gotten the home inspection done.

Save Whenever You Can

There are some areas where you can end up saving quite a bit, such as during your move. There are plenty of moving companies that offer different prices for their services, so be sure to shop around before making your final choice. You can also save even more by taking care of the move yourself. Use things you already have at home to pack up your things in order to avoid spending on moving boxes. Little tricks like these may seem minimal, but they can really help you save quite a bit.

Purchase Title Insurance in Shrewsbury

Don’t forget to ensure title insurance is a part of your final deal. Investing in title insurance will ensure your home investment is protected no matter what. Learn all about the importance of title insurance in Shrewsbury by contacting Home Key Title at (508) 475- 5502.