If you’re listening to the advice of many loan representatives and Realtors, most likely you’re only viewing homes within the price range outlined in your pre-approval letter. But did you know the price limit of homes you can qualify to buy depends on many elements such as your monthly pay, expenditures, loan program, if you have roommates, and more. Similarly, the price spectrum of homes you can purchase will hinge on certain factors.
Instead of only viewing homes in a tight price category, try checking out properties above and below your recommended price range. If you don’t spend enough time checking out the local market, you won’t get the feel of the type of home and neighborhood you want to reside in.
Some home buyers blindly trust the recommendations of their Realtor and only check out properties in a narrow price spread. After these homebuyers begin to live in their new property, they’re disappointed to uncover the fact they could have offered on nicer homes with larger square footage if they had only reorganized their finances and taken advantage of creative financing options. If these homebuyers had tried an adjustable rate mortgage (ARM) rather than a fixed rate mortgage, they could have purchased a better property in a better school district.
Make sure you tell your Realtor or loan agent bed show you properties in a broader price range. Try seeing as many properties and neighborhoods as you can. Sadly, it’s not uncommon for many Realtors to drive you only to properties up to your maximum price limit. This would be comparable to you going to the beauty salon for a new hair style and your hairdresser asking you to choose a new style without looking at the latest hair magazines.
This situation is similar to the process of you checking out properties to buy. Make sure you spend time checking out what your alternatives are and what different types of financing options you can choose from. If you’re not happy with the selection, just skip to another community. You may change your mind and decide to invest more money for a home in a better community or nicer school district.
You can also change your mind and decide to lower the price limit you want to spend on a home. Instead of paying $475,000 on a property, you might find the perfect home for $350,000. With the money you’ve just saved, you can reinvest it into fixing up the house, live a more luxurious lifestyle, or invested it into the stock market.
It’s important to check out a wide array of properties and communities before you finalize your decision on a home, neighborhood, or price range. Weigh all your options carefully. Compare all the benefits and features you get with each particular property. By following these home buying steps, you’ll make a decision you can feel good about.
If you want to buy property in Orange County, check out these Tustin homes for sale and choose from these Tustin Realtors to help you view one.
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