25 Sep How to shop for the Right Home without Breaking the Bank
Most first-time homeowners who get good deals do so because they speak to a qualified mortgage broker like those at Capital Mortgages, who make the process of buying a home a walk in the park.
The captivating nature of a dream home is hard to downplay. However, conservative purchasing requires that you be able to let go of every unit that is priced above your budget. Resist the temptation to negotiate with your broker to approve a larger mortgage that will eventually strain your finances.
This is so because a responsible homeowner knows what he can comfortably afford, sets a budget and purchases within the said budget. Picking up a huge mortgage limits your discretionary income or funds that should be available for emergencies.
Essentially, this means that self-control matters most. So, if you are out looking to buy your first home, these three top tips will help you remain within your budget:
Steer clear of multiple offers
A great house with a price tag far lower than its neighborhood standards is most likely a sales trick to generate interest that eventually degenerates into a bidding war. If you come across such a home and its price is near the apex of your budget, you are better off walking away as the pressures of the impending bidding will easily wear you down.
However, if it is well within your budget, then you can put in one good offer. If you get a further invitation to throw in another bid,
disregard the seller and keep scouting for another unit.
When shopping, value your conscience, not emotion
Most first-time homeowners often get emotional when buying a home. This is a mistake you should avoid. Importantly, you should avoid falling in love with a house you are yet to buy or allow your ego to throw you in an unnecessary bidding process.
Lastly, never forget that you are buying a starter home
Research by Genworth Canada shows that 50% of people buying their first homes view these as starter homes. Most such homeowners have plans of moving inside a decade. These years fly by especially if you are raising a family, enjoying your life and doing home improvement works that make you enjoy your home even more.
Spend moderately and get a good home that is well within your budget. Then, over the next ten years, build equity so that when you revisit the market, you can buy the quintessential dream home.