Here’s a quick tip to consider when planning your home-buying budget.
Today I’m sharing a quick tip about your budget when looking for a home to buy. If you’re getting a 30-year mortgage, that means your loan will be spread out over 360 payments. You should take this into account when considering the purchase price of houses.
Let’s say there are two properties you’re thinking about buying, one for $300,000 and one for $350,000. Maybe the $300,000 home needs a ton of work you’ll have to pay for, but the $350,000 house, though more expensive, won’t need all that work. I had a great win with a client recently; they paid about $60,000 over their original budget, but the property is everything they wanted, and they don’t have to go through the stress of renovations on a cheaper home. After considering everything, they saw that their monthly payment would be only slightly higher for the more expensive house because it’s spread out over so many payments.
I recommend reassessing your budget if you aren’t finding properties that check all your boxes. You may not have to make any changes, or you may have to give up a car for a short time, for example, but it’ll likely be worth it. The cost to borrow money is cheaper than it’s ever been, so you might as well spend a bit more upfront and not steal money or assets from yourself later.
If you have questions about your budget or any other mortgage-related matter, call or email me. I would love to help you.