Lower home interest rates are creating an incredible opportunity for homebuyers. The 30-year fixed mortgage rate has settled to 4.25 percent. This means you have greater leverage in your search to find your dream home!
Let’s get away from finances…
Finding the perfect home is a challenge in itself outside the money. You’re factoring location, lifestyle, goals, and more!
This article will narrow the home search by providing helpful tips and suggestions. Soon, you’ll be in the home of your dreams!
Find Your Dream Home: Your Biggest Considerations (And a Couple of Tips)
Finding your dream home can become a nightmare if you’re ill-prepared. Follow along and use these tips to remove the hassle of the homebuying process.
1. Create a Realistic Budget
There are several considerations going into finding a dream home. Perhaps the biggest is knowing how much you can afford. Homebuyers should begin by being realistic with their income, expenses, and financial responsibilities.
Start by doing this:
- Create a monthly and yearly budget
- Plug in your numbers into a mortgage calculator
- Give yourself leeway (+/-) for the home budget
You’ll now have a realistic budget for the home you can afford. This will narrow the dream home selection from the get-go.
Also:
Take this time to improve your credit score so you’ll get a better mortgage. You could use this time to find extra work to build a bigger up-front payment, too.
2. Get Pre-Approved
Shop around and get pre-approved for a mortgage before you browse. This “locks in” your housing budget preventing overspending.
A pre-approved mortgage lets you make instant offers, too. With money in hand, you may get a fantastic deal because of the smooth process.
3. Browse the Online Listings
Use the online listings for a non-confrontational tour of the home. This removes pressure from sellers and realtors, helping you make a calculated decision.
You’ll also have more to choose from when finding your dream home. You’re no longer limited by your immediate location when using online listings.
You’ll want to consider items like:
- Costs
- Floor plan
- Front and back yards
- Location and proximity
- Career prospect
- Schools and colleges
- Crime
- Activities
Narrow the selection and spend an afternoon at the locations. Look at the home but also its surrounding areas. Then, take your search offline with open houses and walk through tours with realtors.
4. Think Long-Term
Small flaws in the home shouldn’t disqualify the listing:
- Think long-term like if you’ll start a family or a business
- Look for the style, floor plan, and location you desire
- Pick a neighborhood you (and family) can grow into
The dream home features can and will change as time passes. Consider 10, 20, even 50 years from now and whether this location and home is the ideal fit.
5. You Don’t Have to Say “Yes”
Realtors and sellers do everything in the book to close the sale. This includes a lot of sweet talking. The excitement can cloud judgment.
Know this: It’s okay to say no and walk away from the sale.
Make your decision based on logic to avoid buyer’s remorse. Consider all options and where life is taking you before signing.
Start Realizing Your Dream (Home), Today
Education is your ultimate resource as you find your dream home.
Take the time to review these tips but also learn from friends and family. Tap your network and get suggestions and feedback throughout the process.
What’s next? Start saving!
Use our helpful saving strategies to cut costs and build your down payment. Do so and you’ll soon live in the house of your dreams!
