Purchasing a home can be an exciting experience. But as you explore the homes in the community you want to move into, reality sets in that you won't be able to afford the ideal home of your dreams. You may have to lower your expectations for a smaller square footage, less bathrooms, or a smaller yard. You may even have to have your kids share a bedroom.
Even though you may have to sacrifice some features, it doesn't mean you can't use a little creativity to get into an affordable home. Be on the lookout for an up and coming neighborhood. Telltale signs include homes being remodeled or new landscaping being installed. You can usually get in this type of community at a reasonable price. Also follow where the artists go. It's not uncommon for artists to change a rundown community into a desirable one.
While you may want to buy the ideal home from the beginning, finances may dictate you enter the real estate market with a starter home. As you build up equity and save money over time, you can purchase a larger home in the future. This method words perfectly for homebuyers who expect their salary to rise in the future. Even if you don't move up to a better paying job, the equity from your starter home will still help you purchase a better home. Even though there are benefits to owning a starter home, you should know about these 3 facts before you purchase one:
1) Puts A Dent In Your Savings - Buying a home is one of the largest investments you'll ever make. You'll have to put a large sum down, plus there will be other expenses such as: moving costs, closing costs, property inspections, property appraisals, and realtor commissions.
If you think buying a smaller home in a nice neighborhood will save you money, you may be in for a surprise. Land costs in nicer areas can be expensive depending on which community you plan to buy into.
2) Pick A Mortgage With Money Saving Terms - It's not uncommon for you to find loans charging you prepayment penalties and points. These fees can eat a good portion of your equity. If possible, shop for a home loan with no prepayment penalty or points.
3) Keep Your Options Open In A Down Market - In a tough economy and a sluggish real estate market, your home won't appreciate much. If this happens, be aware of the potential consequences if you need to sell your home during this time. You could end up losing money on your home and have a difficult time upgrading to a bigger house.
In spite of these precautions, many homebuyers follow this strategy to get their foot into the real estate market. Not only do you enjoy the pleasures of home ownership, but you'll gain experience in being a homeowner.
Even though you may have to sacrifice some features, it doesn't mean you can't use a little creativity to get into an affordable home. Be on the lookout for an up and coming neighborhood. Telltale signs include homes being remodeled or new landscaping being installed. You can usually get in this type of community at a reasonable price. Also follow where the artists go. It's not uncommon for artists to change a rundown community into a desirable one.
While you may want to buy the ideal home from the beginning, finances may dictate you enter the real estate market with a starter home. As you build up equity and save money over time, you can purchase a larger home in the future. This method words perfectly for homebuyers who expect their salary to rise in the future. Even if you don't move up to a better paying job, the equity from your starter home will still help you purchase a better home. Even though there are benefits to owning a starter home, you should know about these 3 facts before you purchase one:
1) Puts A Dent In Your Savings - Buying a home is one of the largest investments you'll ever make. You'll have to put a large sum down, plus there will be other expenses such as: moving costs, closing costs, property inspections, property appraisals, and realtor commissions.
If you think buying a smaller home in a nice neighborhood will save you money, you may be in for a surprise. Land costs in nicer areas can be expensive depending on which community you plan to buy into.
2) Pick A Mortgage With Money Saving Terms - It's not uncommon for you to find loans charging you prepayment penalties and points. These fees can eat a good portion of your equity. If possible, shop for a home loan with no prepayment penalty or points.
3) Keep Your Options Open In A Down Market - In a tough economy and a sluggish real estate market, your home won't appreciate much. If this happens, be aware of the potential consequences if you need to sell your home during this time. You could end up losing money on your home and have a difficult time upgrading to a bigger house.
In spite of these precautions, many homebuyers follow this strategy to get their foot into the real estate market. Not only do you enjoy the pleasures of home ownership, but you'll gain experience in being a homeowner.
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Want to learn new strategies when searching Santa Ana homes for sale? Use these local Santa Ana Realtors to help you find one.
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