Budget for the Homebuying Journey

by Comfort Usukumah Team 11/10/2019

Let's face it – the homebuying journey may prove to be an expensive experience. If you're not careful, you risk overspending to acquire your dream house. On the other hand, if you purchase a home without identifying underlying structural problems, you risk costly home repairs down the line.

Ultimately, it helps to establish a budget for the homebuying journey. If you have a budget in place, you can increase the likelihood of having the necessary funds on hand to overcome many potential homebuying hurdles.

You should have no trouble creating a homebuying budget, either. In fact, here are three tips to help you put together a budget for the homebuying journey.

1. Assess Your Financial Situation

If you intend to purchase a house in the foreseeable future, you'll want to take a close look at your finances. By doing so, you may be able to reduce your monthly spending and use your savings to accelerate the homebuying journey.

It often helps to assess your daily, weekly and monthly expenses. Then, you may discover bills that you can cut from your everyday budget.

For example, you may enjoy dining out regularly, but cooking at home may prove to be more cost-effective. And as you reduce your dining expenses, you can save money that you can use toward the down payment on a new house.

2. Obtain Your Credit Score

Believe it or not, your credit score can make a world of difference in your quest to acquire a house. If you check your credit score, you may be able to find ways to improve your credit score prior to kicking off a house search.

You are eligible to receive a free copy of your credit report from each of the three reporting bureaus (Experian, Equifax and TransUnion). Take advantage of this perk, and you can learn your credit score in no time at all.

Remember, your credit score may have a major impact on your ability to land a favorable mortgage. And if you find that you have a below-average credit score, you then can pay off outstanding debt to improve it before you start your search for a new home.

3. Get Pre-Approved for a Mortgage

Pre-approval for a mortgage is ideal. With a mortgage in hand, you can enter the real estate market with a budget for buying a house.

To get pre-approved for a mortgage, you should meet with banks and credit unions. These financial institutions can offer insights into a variety of mortgage options and help you make an informed mortgage selection.

Lastly, as you prepare a homebuying budget, you may want to collaborate with a real estate agent. This housing market professional can help you hone your home search to residences that fall within your price range. Perhaps best of all, a real estate agent will make it simple for you to avoid spending too much to acquire your dream house.

Get ready to buy a house – use the aforementioned tips, and you can establish a successful homebuying budget.

About the Author
Author

Comfort Usukumah Team

Comfort is a professionally qualified post-graduate trained and experienced Real Estate Broker who has been in the housing business since the eighties. She was a former Chief Executive of one of United Kingdom's Housing Group based in Central London. Comfort Usukumah holds a BSc. (Hons.) in Political and Administrative Studies. She is a corporate member of the United Kingdom's Chartered Institute of Housing ( MCIH); and a former Principal Officer of a Central London Local Government Authority. Comfort was appointed a member of the Barking, Brentwood and Havering Health Authority Board under the Premiership of Tony Blair. Comfort was also appointed the first Chairman of the London Borough of Havering's Race Equality Partnership. Comfort is a Certified Buyer Representative (CBR), Commercial & Investment Real Estate Certified (CIREC) and a professional Property Manager with a Post Graduate Diploma (PGDip.) in Housing from Middlesex University, Enfield, United Kingdom. Currently, Comfort is the President and CEO of Comfort Homes & Property Management LLC. CHPM is headquartered in the city of New Rochelle, NY, USA. She is a New York State Licensed Real Estate Broker, a member of the New York State Association of Realtors (NYSAR) and National Association of Realtors (NARS). Areas we cover include Westchester County, City of New York, State of Connecticut, Long Island, Rockland, Putnam, Bronx, Pennsylvania, and Georgia. Apart from the superior services and extraordinary results we provide to our property Buyer and Seller clients, we also specialize in relocation services, serving Ambassadors, Diplomats and Senior Corporate Executives from all parts of Africa, Europe and the rest of the world. We manage commercial buildings, rentals, and properties on behalf of Owners. Why don't you call Comfort today and experience the first class services yourself and in comfort?