When you begin looking for a new home, you might find youself a little overwhelmed. Not only are their lots of details that you may not be aware of (or may have forgotten if you purchased a home long ago) but the prices of homes may provide an overwhelming amount of “sticker shock.”
If it’s been a while since you bought a home you may soon find that there’s a big difference in the value of homes today. That’s good news for you when you sell your existing home, but you may find that you can’t afford as much house as you might have liked. On the other hand, you may find that you’ll be better off purchasing a home that needs a little tender loving care in order to get more house for your buck.
The good news is if you do have to do some cleaning and cosmetic work, you can fix stuff up just the way you want it. You get to pick the colors, textures, and styles and really make your house a home. Another option is to buy the house of your dreams but to simply put off decorating, landscaping, or buying new furnishings for a while, and working with your existing items.
You might be able to do things a little at a time, starting with some small, less costly projects until you’ve got a few payments under your belt. Try to make some payments against the principle when possible to whittle down your interest. Speak to the finance company or bank to find the best payment method for you. You might just want to have one extra payment per year automatically taken from bank account (and have it applied directly to the principle). This can literally shave years off your mortgage.
Something else to keep in mind is the recommended amount of money to spend when buying a house. It is said that your monthly mortgage payment should not be more than one week’s pay or about 25% of your monthly income.
Best wishes in finding your dream home!