subject: Buying A Home - Why It Pays To Look At Homes Outside Your Price Range
[print this page] If you're following the recommendation of most mortgage agents and real estate agents, you're probably using your pre-approval to gauge how much home you can afford to buy. How much home you can afford depends on several factors such as your income, expenses, type of financing, roommates, and more. Likewise the full price range of possible homes you can qualify for will depend on several factors.
Rather than confining yourself to viewing homes within a narrow price range, try looking at homes above and below your suggested price range. Without spending adequate time searching the market, you won't learn what kind of house and community you want to live in.
Some homeowners mistakenly follow the poor advice of some Realtors and only view properties in a tight price range. After purchasing a home, they're shocked to discover larger and nicer homes they could have purchased with some budget prioritizing and creative financing. By simply switching to an adjustable rate mortgage (ARM) instead of a fixed rate mortgage, they could have qualified for a nicer home in a desirable school district.
Make sure you aren't forced to stay within a narrow price range. Check out as many houses and communities as you can. Unfortunately, many real estate agents will ask you what your maximum price limit is. This scenario is equivalent to planning a vacation to a new destination and a travel agent asking you which hotel you would like to stay in. You'd probably reply saying you didn't know since you didn't get the opportunity to study any hotel brochures.
This scenario is similar when you go shopping for a house. Be sure you thoroughly researched what your options are and what type of financing is available to you. If you're dissatisfied with what you see, don't be afraid to switch to a different neighborhood. You may just decide to spend more money for property in a better neighborhood or better school district.
On the other hand you may decide to spend a lot less on a property. Perhaps $350,000 will satisfy most of your home buying needs. Rather than paying $475,000 dollars, you can set aside the money and use it to renovate the house, live a more comfortable lifestyle, or invest in higher paying returns.
It's important to check out a wide array of properties and communities before you finalize your decision on a home, neighborhood, or price range. Weigh all your options carefully. Compare all the benefits and features you get with each particular property. By following these home buying steps, you'll make a decision you can feel good about.
