How To Stay On Budget When Buying Your First Home

How To Stay On Budget When Buying Your First Home

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When you begin your search for the perfect home, there will be a lot of ideas and big dreams as you picture what your new house will look like.

Many of us will seek a house with plenty of square footage, a nice piece of land, and a close proximity to the best schools.

Unfortunately, you may not be able to get everything you want if your budget does not match your expectations.

This leads to the following question… How can you manage your dream-house expectations versus real-world possibilities?

What is your Budget?

A bank typically sets a borrowing limit based on your income and your ability to repay a mortgage loan.

Many first-time homebuyers over-commit their spending power by borrowing the entire amount of the loan for which they are approved. This leaves very little flexibility in your monthly budget for fixed expenses and any unforeseen repairs.

It is important to allow for changes in your future circumstances. This means that we can’t always get everything we want.

Focus on what matters:

Prepare a realistic set of criteria that you do not want to compromise on such as buying a four bedroom home, with a garage and a garden.

Sometimes you may have to decide between your ideal location and your ideal house size because you may not able to afford both and still remain financially comfortable.  Perhaps you can look at commutable areas near your destination of choice?

Whatever you decide, make sure that you can see yourself being really happy with a house before you purchase. It is important to be happy with such a big decision.

Remember that Rome wasn’t built in a day:

Don’t worry if you can’t afford to furnish and decorate your new home in a week, a month, or even a year. Often we feel a sudden pressure to transform a new house into something magnificent straight away, but sometimes this is not feasible.

It’s perfectly acceptable to update the bathrooms, landscaping, and furniture when you have enough finances to do so. No one expects your new home to be perfect in an instant, so don’t place any unnecessary financial stress on your shoulders!

Can we help you?

Make sure to stay on top of your finances. Murray & Spelman (Financial Services) Ltd have an excellent team of qualified advisors that can help you with your Mortgage process.

We would be happy to take some stress out of your day and talk to several leading financial institutions on your behalf.

Request a Callback and let us help you take one step closer to your dream home.