10 Tips To Buy Real Estate Without Breaking Your Budget

10 Tips To Buy Real Estate Without Breaking Your Budget

10 Tips to​ Buy Real Estate Without Breaking Your Budget
1 .​
Get pre-approved for​ your home loan .​
This means, fill out a​ loan application and​ go through the​ process of​ securing financing .​
That way, when you’re ready to​ seriously evaluate real estate, you’ll know exactly how much home you can afford .​
And you can prove to​ a​ seller that your offer is​ sincere.
2 .​
Explore creative financing options .​
During the​ home loan pre-approval process, ask about ways to​ get creative with your financing .​
Low down payment options, first and​ second mortgage combinations and​ first time buyer programs might help you afford more funding .​
Many lenders are now offering interest-only home mortgages; just make sure you thoroughly evaluate the​ terms for​ this type of​ home loan .​
Down payment grants are also available in​ some instances and​ might be worth investigating or​ discussing with your realtor.
3 .​
Sell your existing home first .​
Although selling your existing home before finding new real estate to​ buy can be a​ little nerve wracking, any inconvenience will be offset by your ability to​ make an​ offer with cash in​ hand .​
Contingent purchases are not the​ best when negotiating to​ buy a​ home .​
Having your financing in​ order and​ your bags packed will give you the​ advantage in​ a​ competitive market .​
4 .​
Look for​ vacant real estate .​
Perhaps a​ seller’s job has transferred him out of​ the​ area .​
Or maybe a​ family purchased a​ new home before putting their existing one on the​ market .​
In any case, a​ vacant home could be just the​ deal for​ a​ savvy home buyer, so have your realtor look for​ vacant property in​ your preferred neighborhoods .​
And keep in​ mind, the​ longer a​ house stays empty, the​ greater your negotiating power will be .​
5 .​
Consider cosmetic fixers .​
If you’re handy with a​ paintbrush, a​ toolset and​ gardening equipment, consider buying real estate in​ need of​ cosmetic fixing .​
Property that lacks curb appeal needs minor handiwork or​ the​ yard overhauled could end up being the​ home of​ your dreams for​ a​ price you can afford .​
You just need to​ look beyond the​ ho-hum to​ see the​ potential of​ a​ cosmetic fixer .​
6 .​
Buy a​ home that’s a​ major remodel project .​
If you want to​ live on Lake Washington, but can’t afford a​ $2M home mortgage, consider buying a​ dilapidated cottage on a​ fabulous lot with western exposure .​
In time you’ll need to​ gut the​ existing home and​ build from the​ ground up or​ contract significant home improvements .​
But in​ the​ end your property value will skyrocket .​
And if​ your carpentry and​ other construction skills are well-developed, you can save even more and​ accrue sweat equity during your remodel by doing much of​ the​ work yourself .​
7 .​
Don’t discount bank foreclosures .​
One person’s loss could be your gain if​ you buy real estate in​ foreclosure .​
Although the​ search for​ a​ decent foreclosure may take a​ while, your realtor should be able help .​
The U.S .​
Department of​ Housing and​ Urban Development (www.hud.gov/) can be an​ excellent resource for​ foreclosed properties .​
Because HUD houses are sold at​ market value, your best bet will be homes that need cosmetic work or​ even major repair.
8 .​
Land with a​ manufactured home .​
Sometimes, to​ buy a​ home on a​ budget, you need to​ look beyond convention .​
Even if​ your wish is​ to​ buy real estate, you may have to​ settle for​ a​ piece of​ property in​ an​ outlying area with a​ mobile or​ manufactured home .​
Discuss this option with your real estate agent and​ try to​ keep an​ open mind about this possibility.
9 .​
An older, smaller home .​
Older homes are typically priced much less than newer construction and​ don’t tend to​ create buyer bidding wars .​
If you can enjoy life in​ an​ older and​ smaller home in​ a​ neighborhood or​ suburb off the​ beaten path, this could be your ticket to​ real estate ownership .​
10 .​
The cheapest house in​ the​ best neighborhood .​
You have your heart set on a​ specific – and​ expensive – neighborhood .​
Maybe it’s the​ schools that you’re interested in .​
Or perhaps it’s the​ close proximity to​ downtown or​ the​ waterfront .​
In any case, a​ budget-savvy buyer will look for​ the​ least expensive home for​ sale in​ the​ neighborhood .​
If you’re not in​ a​ hurry, you can even play the​ waiting game to​ see what properties come on the​ market .​
Your real estate agent can be a​ real asset in​ this case by investigating potential sellers.
Buying real estate without breaking your budget will require research and​ compromise .​
On moving day, however, you’ll have the​ satisfaction of​ knowing that your homework paid off!

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