Buying your first home is exciting. Now that you’ve saved up and are looking through prospective homes, you’re thinking about all the must-have features in your dream home: granite countertops, walk-in closets, a backyard conservatory, etc.
There is, however, a small catch: your budget doesn’t quite support the literal house of your dreams. There’s no need for you to feel discouraged, though! It’s still possible to find your fantasy home within your financial plan, and Econ Mortgage believes it’s just a matter of striking the balance between dream home requirements and a reasonable budget.
Differentiate between Your Wants and Needs
Try to figure out what’s essential to your new home, and what features might just be an added luxury. For example, if you have a car you’ll definitely need a new place with a garage or a basement to park it in. Take care not to confuse what you need with what you want. You could save a lot more money by choosing a house without an extra bedroom or a large balcony if you’re just a small family.
Existing Homes Aren’t so Bad
A recent study by Trulia shows that most homeowners prefer new homes over existing ones. The cost of construction of a new home, however, could cost you 20 percent more than buying a comparably older house still in good condition. An existing home will do as a starter home — after all, it’ll be a lot easier for you to upgrade to a bigger home later on, once you’ve saved enough cash.
Finding a home in the swankiest part of town can be expensive, while settling for more affordable neighborhoods may expose you to a higher level of crime and violence. When it comes to looking for the right place, be on the lookout for “transitional neighborhoods.” These are areas potentially on the upswing of being the next hot, trendy area for a couple more years. If you’re lucky, you’ll become part of a nice community before the prices catch up!
Even with a limited budget, you can still find a reasonable home that fits your requirements as long as you shop smart and decide on the home essentials to your new place beforehand.