Many of us have looked at a home that ticks all the right boxes, only to realize the price really is that bit too much. An article in realtor.com has highlighted a few ways to help you buy your dream home, without going wildly over budget.
Their first tip is to negotiate, as it can be surprising to find out exactly what sellers and agents are willing to compromise on. This approach may work if a seller is more motivated and perhaps need to move because of divorce or work relocation. Some people may also be looking for a reasonable offer and could be willing to accept a little less if you are able to close the deal more quickly. Apparently, many people make little effort to negotiate the price of a property, but doing so could just get you your dream home.
Realtor.com also suggests looking into programs that may help people buy homes, for example down payment assistance programs. These programs aren’t necessarily aimed at people on low incomes and you could just qualify. These programs may offer help with the down payment or the closing costs and it is worth checking with lenders to see if any are available in your area as they change quite frequently. Another option, if you are looking to purchase a home requiring renovations, is to look into financing it with a renovation loan. With this type of loan, it is possible to carry out the necessary renovations and to have the cost factored into the loan.
A third tip is to think about alternative mortgages and not just to opt for a normal thirty year fixed rate deal. Often buyers may be better off looking at other options including five or ten year adjustable rate mortgages. This may translate into lower upfront payments. It could also be worth looking into having private mortgage insurance paid by the lender or seller, as this will also help achieve a lower monthly payment.
Purchasing a home can help save money in other ways.. For example the property might be more energy efficient, leading to lower utility bills, or if it is closer to work then commuting will be that much cheaper. Buying a home in an area with good schools could save money on private tuition. Buying a home is often a long-term decision, and purchasing a home where you can be happy for many years could ultimately save money, and of course you will have the pleasure of living in your dream home.