Should You Create a Homebuying Budget?

by Meg Burke 05/05/2019

A homebuying budget can make a world of difference, particularly for those who want to streamline a house search. If you have a budget at your disposal, you will know approximately how much you can spend on a residence. Then, you can narrow your house search accordingly.

Establishing a homebuying budget can be simple. Now, let's take a look at three tips to help you do just that.

1. Evaluate Your Finances

Your income and savings can have far-flung effects on your ability to acquire your dream house. If you perform an in-depth review of your finances, you can find out exactly how much money you have available before you launch a house search.

It often is a good idea to consider your long-term finances as you prepare to kick off a house search, too. A house usually is a long-term investment. And if you account for your long-term finances in your homebuying budget, you may be better equipped than ever before to conduct a successful home search.

2. Get Pre-Approved for a Mortgage

Banks and credit unions are happy to teach you about different types of mortgages. Plus, they can help you get pre-approved for a mortgage without delay.

To get pre-approved for a mortgage, you should meet with several banks and credit unions. Of course, if you have mortgage questions, you should address them before you submit a mortgage application. Once you have a mortgage in hand, you can establish a price range for your house search.

3. Examine Your Potential Closing Costs

Attorney fees, house inspection expenses and other closing costs may surprise some homebuyers. Yet if you understand your potential closing costs, you can plan ahead for these expenses.

Closing costs generally range between 2 percent and 5 percent of a house's purchase price. They also may be incorporated into the overall cost of a house. However, if you evaluate potential closing costs early in the homebuying journey, you can account for these expenses in your property buying budget.

As you get ready to launch a house search, you may want to hire a real estate agent, too. This housing market professional understands what it takes to find and acquire a terrific home at a budget-friendly price. Therefore, he or she will do everything possible to help you accomplish your homebuying goals as quickly as possible.

If you want to purchase a house close to your office in the city, for instance, a real estate agent will offer tips and recommendations to help you find a first-rate house in or near the city itself. On the other hand, if you aspire to own a home that boasts multiple bedrooms, a real estate agent will help you hone your house search to residences that fall in line with your expectations.

Ready to launch a successful home search? Thanks to the aforementioned tips, you can prepare an effective homebuying budget. As a result, you could speed up your quest to discover and purchase your dream house.

About the Author
Author

Meg Burke

 Meg & Loudoun County: Back in 1993, we moved here from Pennsylvania, thinking we'd stay for a year or two -- now it's been well over twenty five! In the past I was a broadcast advertising rep (Philly market) and at-home mom, until in 2000, when I jumped into the real estate business. Even with all the ups & downs, I've loved this business ever since! I've raised two wonderful children in Loudoun County Public Schools (www.lcps.org); one is a recent VA Tech graduate, and the other graduated from UVA. I've come to know Northern Virginia well and truly enjoy calling Loudoun County "home." Northern Virginia, and Loudoun County in particular, expanded dramatically in the mid 2000's; but along with the rest of our nation, experienced the challenging real estate market contraction of the "great recession." Luckily, our area has been back in a solid growth trend in recent years, so we are seeing fewer distressed properties and both resale and new construction homes are selling well. Let me assure you: Even as it grows, Loudoun County continues to be a wonderful place to live! Where else can you live less than an hour from concerts at the Kennedy Center or Capitol Center, Smithsonian Museums, the AND the Appalachian Trail? Loudoun County Notes: One of Loudoun's strengths is that we have a broad-based economy. We are not just a federal government dependant suburb. For example, did you know that over 70% of the world's Internet traffic flows through Loudoun County daily? (https://biz.loudoun.gov/) Ask me about the 45 mile-long Washington & Old Dominion Trail, which is great for jogging, walking the dogs or even an all-day bike trek. https://www.novaparks.com/parks/washington-and-old-dominion-railroad-regional-park Do you enjoy wines? Loudoun County is home to award-winning vineyards, with a reputation that is growing every year. www.visitloudoun.org/things-to-do/wine-country/ Serious shopper? Then you must visit the Leesburg Corner Premium Outlets! The antique shops in Leesburg, Purcellville & Middleburg are fantastic. You won't want to miss my personal favorite: the Waterford Fair in October -- an outdoor juried crafts fair in historic Waterford. www.waterfordfoundation.org History buff? Gardener? Perhaps you would prefer to stroll the grounds of Oatlands Plantation, a National Trust for Historic Preservation property; tour Morven Park or Dodana Manor in Leesburg. The farm and garden tours each year are always fascinating and enjoyable. Country Fairs are still going strong in Loudoun County. The Leesburg Flower & Garden Festival in Apri (another one of my personal favorites); the Bluemont Fair in September; Octoberfest in Lovettsville;... These are just a few of the events to enjoy throughout the year. Loudoun County and Leesburg, the county seat, are frequently included in "best of" lists (http:\/\/money.cnn.com\/magazines\/moneymag\/best-places\/2013\/snapshots\/PL5144984.html ) (https://smartasset.com/mortgage/happiest-places-in-america) There is so much to enjoy in Loudoun. Come see for yourself. I'd be happy to show you around! There are so many reasons to enjoy living here, but remember, the market is still quite fluid and challenging. Let me help you navigate your way through the interesting and sometimes overwhelming resales, short sales, foreclosures and new construction. I take my profession seriously; and although I do have my bachelor's degree (U. Penn, back in 1981), I am constantly upgrading my professional education in order to provide you with the most informed and up-to-date real estate support. Please remember: whether you or your friends are interested in buying or selling, MOVE WITH MEG! Let me help you make this a positive experience for you -- both for your family and your finances!