Budget for the Homebuying Journey

by Donald F. Norton 11/24/2019

Let's face it – the homebuying journey may prove to be an expensive experience. If you're not careful, you risk overspending to acquire your dream house. On the other hand, if you purchase a home without identifying underlying structural problems, you risk costly home repairs down the line.

Ultimately, it helps to establish a budget for the homebuying journey. If you have a budget in place, you can increase the likelihood of having the necessary funds on hand to overcome many potential homebuying hurdles.

You should have no trouble creating a homebuying budget, either. In fact, here are three tips to help you put together a budget for the homebuying journey.

1. Assess Your Financial Situation

If you intend to purchase a house in the foreseeable future, you'll want to take a close look at your finances. By doing so, you may be able to reduce your monthly spending and use your savings to accelerate the homebuying journey.

It often helps to assess your daily, weekly and monthly expenses. Then, you may discover bills that you can cut from your everyday budget.

For example, you may enjoy dining out regularly, but cooking at home may prove to be more cost-effective. And as you reduce your dining expenses, you can save money that you can use toward the down payment on a new house.

2. Obtain Your Credit Score

Believe it or not, your credit score can make a world of difference in your quest to acquire a house. If you check your credit score, you may be able to find ways to improve your credit score prior to kicking off a house search.

You are eligible to receive a free copy of your credit report from each of the three reporting bureaus (Experian, Equifax and TransUnion). Take advantage of this perk, and you can learn your credit score in no time at all.

Remember, your credit score may have a major impact on your ability to land a favorable mortgage. And if you find that you have a below-average credit score, you then can pay off outstanding debt to improve it before you start your search for a new home.

3. Get Pre-Approved for a Mortgage

Pre-approval for a mortgage is ideal. With a mortgage in hand, you can enter the real estate market with a budget for buying a house.

To get pre-approved for a mortgage, you should meet with banks and credit unions. These financial institutions can offer insights into a variety of mortgage options and help you make an informed mortgage selection.

Lastly, as you prepare a homebuying budget, you may want to collaborate with a real estate agent. This housing market professional can help you hone your home search to residences that fall within your price range. Perhaps best of all, a real estate agent will make it simple for you to avoid spending too much to acquire your dream house.

Get ready to buy a house – use the aforementioned tips, and you can establish a successful homebuying budget.

About the Author
Author

Donald F. Norton

Thank you for viewing my website, and why I hope you will choose me to represent you as your agent whether your buying or selling here in the Boston/North Shore area. A lifelong resident of Somerville, married to Patricia in 1967 and together we raised a small family, we owned our first home in 1972 a single family and our second home was in 1976 in the City Hall area of Somerville, we both have worked for the city off and on over the years, but together we got our Brokers license in 1977. With a small group of individuals we opened our first company in 1983, lower Broadway with Ross Blouin, Don Snow, Ron Marble, Roy Scarpato, Jerair Gharibian and Stan Koty we ran a successful Real Estate company till 1990 when we all broke up and decide to go on our own way, still maintaining a friendship the entire time.    In 1990, Patricia and I purchased the ERA franchise for the local area, that we kept for just about 20 years and then decided it was time to move on without the high cost of a franchise and to maintain the business on our reputation which was and is one of the best in the area. We pride ourselves on innovations and moving ahead of the business, being first in a web page using the internet to market homes, being one of the first to look at Buyer agency as a unique opportunity to represent clients interest in buying as well as our clients the sellers in selling. We are proud of our work, our long time in the business, lots of agents and brokers come and go, we are still here, one of the oldest companies to keep on moving ahead. I am also a state certified Real Estate Teacher, since early 1990's. I have taught at Somerville High Adult Evening School for about 18 years, successfully having a high success rate in students passing the exam. I am a member of the TAN network of broker/agents, Top Agent Network, which is an exclusive organization of only those agents who have obtained top sales over the years, I rank in the top 20% of the agents/brokers active today and have for many years. I have sold over the years, churches, shopping centers, large commercial and all kinds of residential properties throughout Massachusetts since 1977. I personally and as a broker/owner have never had a violation of Ethics or even a lawsuit for myself or our company. I teach our agents to represent clients in buying or selling a property as if it's their own transaction. We stand by our clients as if they were the only ones we represent.