Looking at Your Home Search Financially
So it’s time to get a new house; congratulations! Homebuying can be a rewarding, satisfying experience. When it comes to searching for your dream home, finances can be complicated. Here are San Elijo Hills’ best economic tips to keep in mind as you look for your new address.
Be Prepared Emotionally
Home buying isn’t easy, though that’s not what any buyer wants to hear. This advice –a form of tough love– is necessary to understand. There will be moments that feel emotional and stressful. There will inevitably be bickering about finances, style preferences, and more. The best way to handle all of the stress is to understand it’s transient, and have a plan for everything. Once you have your dream home, you’ll feel much better and be glad you made calm, well-thought out decisions.
Budget First
Many homebuyers use their pre-approval loans as a benchmark for how much to spend. In general, banks will over-approve in order to make money on the interest. Before getting your mortgage approval, budget realistically. Talk over monthly payments, and consider affordability of a property if a family member were to get sick or lose their job. Your new home should be well within your financial realm regardless of circumstances that may arise.
Consider the Little Things
In addition to financial circumstances, it’s important to consider the little fees that may pop up over time. There’s maintenance to a house, no matter how new it may be. There’s also homeowner’s insurance, weather-specific insurance, and utilities to keep in mind. It’s best to budget as though your home will cost more than its mortgage, and set aside any savings for surprise home repairs or bills you hadn’t thought of.
View Homes of the Same Price
Viewing only one home in your price range greatly reduces your ability to tell if you’re getting a good deal. It’s no secret that home sellers will mark up their properties in order to get the price they want post-negotiations. Make sure to check out other homes with the same price tag. You might find something for the same amount you like more, or you can use its additional features as a bargaining point for a different house.
Look at Time on the Market
If houses in your price range typically hang around the market for 6-8 weeks, don’t feel pressured to put in an offer immediately – there’s no need! Rushing into offering means you lose out on offering lower at a later date. Additionally, sellers often lower the price over time.
Be Mindful of Referrals
There’s a lot of business professionals involved in the realty space. There’s the realtor, lender, appraiser, and inspector. When working with someone, they may refer you to a friend of theirs in a different sector. Be careful, and do your research before using a recommended professional, as many get “kickbacks” for each client they refer. Because of this, they may not have your best interest at heart, and could only be considering their wallets.
Short and Long-Term Plans
Regardless of your ideal intentions, not every plan goes accordingly. You may find that a home you intended on staying in forever is no longer your dream house. Maybe you switched jobs and your commute is longer, or your family has outgrown the space. Not every home has to be an investment, and you should be financially prepared for “life happening” if it turns out your house is only a temporary home.
Finding Your Home in San Elijo Hills
San Elijo Hills is always developing new neighborhoods, with each luxury home customizable. Our variety of floor plans combined with options to personalize is what makes our Davidson Communities at The Estates and the Hallmark Communities so popular. Choose from French Country, Old World, Spanish, and Tuscan exteriors, all within the perfect community to call home.
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