Advice for Homebuyers: Stick to Your Budget

by Lori Vernon Gagetta 02/04/2019

Purchasing a house on a budget can be difficult for even the most diligent property buyer. Lucky for you, we're here to help you create an effective homebuying budget and reduce the temptation to spend beyond your means to acquire your ideal residence.

Now, let's take a look at three tips to help you craft a property buying budget.

1. Examine Your Finances Closely

Your income, everyday expenses and other financial factors may impact your ability to buy a house. Therefore, you should analyze your finances closely to determine how much you can spend on a residence.

Once you evaluate your finances, you can establish a price range for your home search. Next, you can kick off a house search and move one step closer to acquiring your dream house.

2. Get Your Credit Score

Your credit score is a three-digit number based on your outstanding debt, length of credit history and other factors. It may have a major impact on your ability to secure home financing and establish a successful homebuying budget. As such, you should review your credit score and work to improve it before you enter the housing market.

To obtain your credit score, you can request a copy of your credit report from each of the three reporting bureaus (Equifax, Experian and TransUnion). You are eligible to receive a free copy of your credit report annually from each credit reporting bureau. Thus, you should take advantage of this complimentary perk and obtain your credit report as soon as you can.

If you identify outstanding debt on your credit report, you should work to pay this off. Or, if you find errors on your credit report, you should contact the bureau that provided the report to fix these mistakes.

3. Meet with Lenders

Banks and credit unions are happy to meet with you to discuss various home financing options. If you consult with these lenders, you may be better equipped than ever before to create a successful homebuying budget before you launch a house search.

Ultimately, lenders can help you get pre-approved for a mortgage. If you get a mortgage prior to searching for a house, you'll know exactly how much you can spend on a residence. Then, you can speed up your home search and discover your dream house faster than ever before.

As you get ready to begin your quest for your ideal residence, you may want to hire a real estate agent too. This housing market professional can put you in touch with top lenders in your area and help you secure home financing. Furthermore, a real estate agent can tailor a home search to your property buying budget. Perhaps best of all, a real estate agent will help you negotiate with a seller's agent to ensure you can get the best price on any home, at any time.

Create an effective homebuying budget – use the aforementioned tips, and you can establish a property buying budget and use it to streamline your home search.

About the Author
Author

Lori Vernon Gagetta

After attending the University of Iowa, Lori traveled extensively with her positions in the travel industry before calling the Napa Valley home. For the past twenty years, Lori has earned a reputation for her organizational skills, honesty and integrity in the community as Manager of a local Travel Agency, as Director of Operations for Francis Coppola and as Director of Operations for a highly successful executive placement firm. 

These diverse positions have enabled Lori to explore the many different aspects of business from a small, local yet competitive company to the worldwide exposure of marketing international resorts, property management and the high tech industry of Silicon Valley.

As a member of the North Bay Association of Realtors, Napa Chapter, the National Association of Realtors, the California Association of Realtors and the Bay Area Real Estate Information Services, Coldwell Banker Previews International, Lori brings her attention to detail and her dedication to customer to Real Estate. Joining Coldwell Banker, Brokers of the Valley in August 2001, has afforded Lori the opportunity to experience all aspects of the residential real estate market. From the first time home-buyer, to the acquisition and marketing of vineyard land, ranch or estate property, Lori offers a progressive, informative and professional approach. 

This dedication and commitment has earned Lori a position in the President's Elite, the top 1% of all Coldwell Banker International Sales Agents.