7 Things You Should Know Before Buying A Budget-Friendly Home
What should you know when looking to buy a house? Buying affordable housing requires more than just finding a home you like, getting a loan, and moving in. You’ll want to find an affordable home that fits your needs and serves as an investment, too. Here are some things to think about when it comes to buying a budget-friendly home.
1. Get A Great Buyer’s Agent.
A good real estate agent can help you find affordable housing. A great real estate agent will help you navigate the tricky home buying process and will be key during negotiations. Get recommendations from friends or family, and interview at least three potential agents. Doing so will save you time and money in the long run. You and your realtor will be working together as a team, so you’ll still need to do your homework and ask questions.
2. Buy The House You Know That You Can Afford.
There are many determining factors when it comes to what your monthly house payment will be. Your credit score and how large your down payment is are the two most common. Be mindful of the true cost of buying a home. Not only are you paying a mortgage, but there is also potential for increased utility bills, Home Owner Association fees and home maintenance. To experience how the increase will impact your daily life, determine how much you are willing to spend per month on your new home (including the increase in utility bills, maintenance and Home Owner Association fees) and place the difference between that and your current rent or mortgage in a savings account to use as part of the down payment. After a few months, you’ll be fully aware if you need to adjust your home budget up or down, and you’ll save money in the meantime.
3. Location. Location. Location.
Always consider your home’s resale value, even before you purchase it. Consider buying the smallest home on the block or a fixer-upper in a hot location. Your home will appreciate in value as you are living in it. Another aspect to consider, even if you don’t have children, is the reputation of the school system zoned for your area, as well as the abundance of shopping and emergency or medical services.
4. Do A Drive-By.
Searching online for a home is a quick and easy way to find homes. However, before you go see a home, you might want to do some drive-by searches at different times of the day to get a look and feel for the neighborhood and traffic patterns. Not all homes may appear online right away, especially homes sold by owner and newly listed ones. Your agent may also know about homes that are soon to be on the market, too.
5. Homes That Need To Sell Quickly.
To find affordable housing, look for homes that have been on the market for a while, or have reduced their price. These homes may have highly motivated sellers that are willing to negotiate with you. Due to downsizing, a change in financial status, or a new job, some sellers may need to move quickly. Spread the word that you are in the market and keep your ears open for word-of-mouth tips. Go to estate or moving sales in areas where you would like to move to get a feel for the neighborhood and for the opportunity to meet a potential seller.
6. Do Your Inspecting Due Diligence.
The listing agent should alert you to any anomalies in the home, as required by law. It’s always a good idea, however, to bring a knowledgeable friend or relative to see the home. They may spot cosmetic or even structural damage that you or even your buyer’s agent may not have noticed. After you have placed your bid and it has been accepted, you will want to hire a home inspector. Be sure to check out their reputation before hiring, and ask questions. Once hired, have your inspector check to see if a renovation was done without a permit. If so, it might not have been done right. No permit means that the work was not reviewed by an inspector at the time of renovation, which could result in problems.
7. Try To Visualize Yourself In The Home.
Sometimes when you view a home, it will be filled with the current owner’s furniture and possessions. Learning to see past the clutter to the potential of the home may allow you to find better deals than you otherwise wouldn’t. The current owners may have also picked a wall color that just doesn’t suit your style. Painting walls is an easy, affordable way to make the house your home. Remember, the décor can always change, but the overall layout of the home is key.
Buying a home is one of the most important decisions you will ever make and such an exciting part of life’s journey. Congratulations!
If once you purchase your home and the unexpected happens at home, consider getting quick access to the cash you need to repair an appliance or a leaky faucet with a payday loan, or for those more involved repairs, a title loan, installment loan or line of credit from Advance America. All loans are subject to approval.
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