Do you dream of buying one of our local Mansfield homes for sale, but think there's no viable way to afford it? Think again! 2019 can be your year to purchase a house! Gathering the right information, taking advantage of multiple resources and making friends with your budget are the critical ingredients for taking that life-changing step. With a bit of planning and effort before you begin searching, buying a home may not be easier than you ever imagined.
- Understand What You Can Afford
Now is the time to create a home buying budget, and in doing so, you'll know what you can afford in relation to where you want to purchase. In addition to the actual mortgage payment, you'll need to plan for the down payment, closing costs, taxes and insurance, and the likelihood of higher energy and maintenance expenses. That being said, in many cities, monthly rental rates are at or above what you will pay for a mortgage payment. One of the best ways to determine your home buying budget is to talk to a lender and get pre-approved for a mortgage. Knowing what you can afford will allow you to build your budget around what you're expecting to spend on your home.
- Jumping the Down Payment Hurdle
Traditionally, a home buyer has been expected to pay 20% of the purchase price as their down payment, and that figure alone can be very discouraging to prospective buyers. It can take several years to save for that down payment, and many would-be buyers give up on the prospect of being able to come up with enough savings to make buying a house possible. Fortunately, there are programs available that require a much lower down payment. You shave to be willing to look for them. FHA loans allow home buyers to put as little as 3.5% down, and many lenders will work with first time home buyers to accommodate a lower down payment. Most states have special programs to help first-time home buyers with their down payment either through grants, loans or savings programs, so be certain to do some research before you commit.
- Save, Save, Save
Saving for your down payment and closing costs may seem challenging, but being creative and frugal can get you to your goal quicker than you might think. Make a point to pay off credit cards, especially those with high interest rates. Cut back on non-essential spending such as eating out and impulse purchases, instead of putting those precious dollars into savings. Consider selling unused and unwanted items in your home. You'll likely make some extra cash while decluttering before you buy your new home. Anything you can set aside for a down payment will help you when it comes time to finance your home purchase.
- Make the Right Connections
It's smart to shop around for a lender to find the best financial options for you and your family. Also important is connecting with the right real estate agent. Your agent will be your biggest ally during the home buying process, so you'll want to work with someone who makes you feel comfortable and confident and who has a great track record. At Haring Realty, our REALTORS® have years of experience and are market experts who make your homeownership goals top priority.
Buying your own home in 2019 can be a reality, and we'd love to help you find that special house. For more information about Mansfield real estate, contact us at Haring Realty today.