Is The House You Wanted Last Year Now Out Of Your Budget? Here's What To Do
The increase in home prices has many of us considering drastic measures to get into the housing market. And with home prices expected to continue rising, we can be sure that more of you will find yourselves in this situation.
1. Consider a starter home
.With increasing inflation and housing rates, many young couples and families are considering staying in starter homes for a more extended period rather than jumping into a more expensive house that may not feel like home. Starter homes are well-built, move-in-ready homes that are typically in good condition. The buyer's ability to get into the market without as much money down is partially made up for the small budget for a starter home. The benefits of moving into a starter home can be twofold. First, you can get into the market with a small down payment and have more of your savings available for improving and furnishing the home to make it feel like your own. The second benefit is that you get more time in your starter home, increasing overall happiness and providing valuable family memories.
2. Drive a hard bargain
The market shift means many of us are now faced with the choice of paying market prices for a new home or negotiating a relatively cheaper deal than we have now. If you cannot afford a house you want at the time, then you may have to be willing to settle for something that falls within your budget. Since your home is already paid for, you will most likely not get the total asking price for it. So start by looking around and see if there are any homes in foreclosure auctions that would be suitable for you. Sellers and buyers are much more willing to negotiate deals when the property is in foreclosure.
3. Continue to save
In case you haven't noticed, the housing market is hot now. With home prices rising to ridiculous levels, there's a strong chance that you'll be able to land a better deal on just about any house. And if you're able to get within reach of your budget, there's no reason you shouldn't continue saving regularly.
4. Get pre-approved
Mortgages can pre-approve you for a mortgage before you even apply. This can allow you to make an extremely informed decision before ever walking into the booth. If you can secure a pre-approval, you will want to be able to get in writing the terms and conditions of your loan. Communicating the terms and conditions of the loan makes it easier for a lender to evaluate your application and make an offer on your behalf.
Waiting is sometimes the best way to get into a home you can afford. If you find an opportunity to buy a property at a price within your budget, jump on it. However, if it is not within your budget, don't force yourself into a situation where you cannot purchase something you would like. Hold off on viewing properties until the house you want is within your budget. Save up a little more money and then jump into the market.