Finding the perfect home can seem like a dream come true. Unfortunately, affording your dream home can be another matter. If your dream home is outside of your price range, there is still hope. Here are some possible ways you can get the home you want to fall within your budget.
Negotiate With the Seller
Look at the listing price as the wish of the seller. Just because the home is listed for a certain amount does not mean that the seller ends up accepting that amount. There are many factors that influence how much a home sells for. For instance, the current market, the appraisal value, and comparables in the neighborhood all play a role in how much a home ultimately sells for.
If the home's current listing price seems to be out of your price range, do your research. Take a look at the comparables and the market. If homes in the area are going for a lower price, there is a chance you can get the seller to accept a lower rate. Remember, the seller is just as motivated to sell the home as you are to buy it.
Rethink Your Mortgage
A 30-year fixed rate mortgage sounds like a good deal, but the reality is agreeing to one could make affording your dream home now a problem. With the fixed rate mortgage, you have to focus on what you can pay now and in the future. However, if you opt for a different type of mortgage, you can address your immediate need and take time to consider the future.
For instance, if you opt for a 10-year adjustable rate mortgage now, you can get a lower monthly note. The lower note can put your dream home back within your price range for right now. It also gives you time to think about the future.
You can choose to sell your home before the end of the 10-year period if your dream home is no longer as dreamy as it once was or if your financial situation changes. You can also look for a fixed rate mortgage if you decide to stay. Either way, choosing an adjustable mortgage now gives you a shot at your dream home.
Talk to your real estate agent about other steps you can take to make it possible to buy your dream home. He or she can help explore your financial situation and help you find options that fit within your budget and lifestyle.