Finding the home of your “dreams” is a BIG deal, but sometimes it can come with a big price tag. Don’t lose all hope yet. With a few budget tips you might be able to walk into your dream home and call it yours. This Realtor article by Cathie Ericson, shares 5 budget saver tips to make it possible for you to afford your dream home!
Negotiate the price
“Everything is always negotiable,” says Chantay Bridges with TruLine Realty in Los Angeles. “You’d be surprised at what sellers, agents, and buyers alike will compromise on.”
You might not get what you want, but you never know—the seller may be extremely motivated because of a move, work relocation, or divorce, for example.
“They may just be looking for a fair offer and would be willing to sell to you for a little less if they can close faster as a result.”
You’d be amazed by how many people make no effort to parley on price. Smart haggling can get you far! Do it.
Massage that mortgage
“The biggest mistake I see a majority of people make is blindly asking for a 30-year fixed mortgage,” Valentini says. Many home buyers, especially millennials, would be better off if they considered other options such as a five-, seven-, or 10-year adjustable-rate mortgage, she says.
“We live in a much more transient society than we did 20 years ago, and people all too often pay for the ‘security’ of a 30-year fixed loan when, in fact, they will likely be selling or refinancing in less than 10 years,” she adds. Looking into a different loan type can translate into lower payments upfront.
Home buyers can also look into creative options for their private mortgage insurance (e.g., having it paid by the lender or seller), which can help you achieve a lower monthly payment.
Check for ways this home itself could save you money
Sometimes that more expensive house payment will allow you to save in other areas. For example, maybe it makes your commute shorter and less expensive, or it’s in a better school district so you no longer have to foot expensive private school tuition, says Realtor® Jose Tijam with Grand Avenue Realty & Lending in Anaheim, CA.
Another possibility: The energy efficiency of a newer home can reduce your utility bills and might make up some of the cost difference of an older home.
“Sometimes a higher-priced home can actually cost the same as a lower-priced one when you do the math on other factors,” Valentini says.
[Read the full article here: Is Your Dream Home Out of Your Price Range? There’s Hope Yet]