If you’re like most average homesbuyers, you’re probably following the recommendations of your mortgage company’s pre-qualification letter to know what 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.
Don’t make the mistake of focusing on homes in a tight price spread-instead make the effort to check out properties above and below your recommended guidelines. If you don’t take the proper amount of time to research the local real estate market, you’re not going to know what style of house and community you want to stay in.
Some homebuyers 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.
Don’t let your Realtor or loan agent push you into checking out properties in a narrow price range. Inspect as many homes and communities to give you a good feel of what’s out there. If your Realtor only lets you view homes up to your maximum price limit, this would be similar to you planning a getaway to a new tropical destination and your travel agent dictating what hotel price limit you should consider. Most likely you won’t be happy because you didn’t get the chance to check out all the available lodging and make your own decision.
This situation is similar to the process of you checking out properties to buy. Make sure you spend time checking out what your alternatives are and what different types of financing options you can choose from. If you’re not happy with the selection, just skip to another community. You may change your mind and decide to invest more money for a home in a better community or nicer school district.
You also could decide to spend less money on a house. Maybe $350,000 will fulfill most of the features you’re looking for in a home. Instead of paying $475,000, you can invest the money in fixing up the property, live a nicer life, or put it into higher yielding 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.
Are you searching for Los Altos homes for sale, then use these local Los Altos Realtors to locate one.
