Ignite FB Tracking PixelDo You Need a Homebuying Budget? - James A. Wood

Do You Need a Homebuying Budget?

by James A. Wood 11/18/2018

A homebuying budget can make a world of difference, particularly for those who want to streamline a house search. If you have a budget at your disposal, you will know approximately how much you can spend on a residence. Then, you can narrow your house search accordingly.

Establishing a homebuying budget can be simple. Now, let's take a look at three tips to help you do just that.

1. Evaluate Your Finances

Your income and savings can have far-flung effects on your ability to acquire your dream house. If you perform an in-depth review of your finances, you can find out exactly how much money you have available before you launch a house search.

It often is a good idea to consider your long-term finances as you prepare to kick off a house search, too. A house usually is a long-term investment. And if you account for your long-term finances in your homebuying budget, you may be better equipped than ever before to conduct a successful home search.

2. Get Pre-Approved for a Mortgage

Banks and credit unions are happy to teach you about different types of mortgages. Plus, they can help you get pre-approved for a mortgage without delay.

To get pre-approved for a mortgage, you should meet with several banks and credit unions. Of course, if you have mortgage questions, you should address them before you submit a mortgage application. Once you have a mortgage in hand, you can establish a price range for your house search.

3. Examine Your Potential Closing Costs

Attorney fees, house inspection expenses and other closing costs may surprise some homebuyers. Yet if you understand your potential closing costs, you can plan ahead for these expenses.

Closing costs generally range between 2 percent and 5 percent of a house's purchase price. They also may be incorporated into the overall cost of a house. However, if you evaluate potential closing costs early in the homebuying journey, you can account for these expenses in your property buying budget.

As you get ready to launch a house search, you may want to hire a real estate agent, too. This housing market professional understands what it takes to find and acquire a terrific home at a budget-friendly price. Therefore, he or she will do everything possible to help you accomplish your homebuying goals as quickly as possible.

If you want to purchase a house close to your office in the city, for instance, a real estate agent will offer tips and recommendations to help you find a first-rate house in or near the city itself. On the other hand, if you aspire to own a home that boasts multiple bedrooms, a real estate agent will help you hone your house search to residences that fall in line with your expectations.

Ready to launch a successful home search? Thanks to the aforementioned tips, you can prepare an effective homebuying budget. As a result, you could speed up your quest to discover and purchase your dream house.

About the Author

Author
James A. Wood
James is the Managing Broker of Gateway Realty Group, with over 24 years of sales, finance, and management experience in the real estate industry. He has a reputation for his friendly customer service and ability to guide buyers to obtain their dream home, and assist sellers to a smooth, stress free sale of their home. James understands that purchasing or selling a home is one of the most important decisions in a person’s lifetime. James is passionate about educating buyers and sellers to ensure that customers are comfortable during the sales process. James’s knowledge and expertise is attributed to his diverse experience in the real estate industry where he was President of Kensica Mortgage Banc and Midwest Mortgage & Financial Services. His background includes asset management, negotiating sales, and leasing of residential real estate property. James has experience working with first time home buyers to savvy real estate investors. James is currently a licensed real Estate Managing Broker in Illinois & Florida, Community Association Manager (CAM) in the state of Florida and Licensed loan originator in Illinois. When choosing James as your Realtor you can be assured that you will receive the most professional, prompt, and courteous service imaginable. James have always brought abundant energy, creativity, dedication, experience and personal knowledge to each transaction. You can be assured that he will stay on top of all the details of a deal, to provide a smooth and easy going transaction.