Are you looking to join the ranks of homeowners everywhere?
If so, congratulations! Buying a property is likely to be one of the most significant investments that you’ll ever make. Of course, with such a large investment comes a large degree of responsibility.
After all, buying a home does come with its fair set of challenges. Not only can the initial price tag be daunting, but the maintenance of homeownership can also prove to be costly.
If you’re looking to buy your dream home, you’ve come to the right place. We’re sharing six of the best ways to buy your dream home in 2020. From finding a great agent and considering up and coming neighborhoods to becoming a landlord and discovering home rebates, we’ve got you covered.
Table of Contents
1. Save, Save and Save
First things first, it’s time to get serious about your savings plan.
The best way to begin your savings journey is to meet with a mortgage broker. In doing so, you can learn about the realistic carrying costs of a prospective home.
Once you have a general understanding of the cost to purchase and maintain a home, you’ll be better equipped to budget for such a purchase. Each month, you’ll want to strive toward putting a portion of that cost into a savings account.
Remember, you’ll have to save for a downpayment, closing costs and taxes. You’ll also want to ensure that you can comfortably cover your mortgage and utility payments each and every month.
2. Find an Incredible Real Estate Agent
Next, it’s time to arm yourself with one of the most important weapons in your home search: Your real estate agent.
It’s safe to say that having a top-notch real estate agent is the best means to finding a dream home. After all, the best agents are experts in their local housing market. In discussing your criteria, these agents are going to make it their mission to find you the best possible property to match your criteria.
These are agents that know the market like the back of their hand. They’re expert negotiators, understand how to communicate well and will take your property search seriously.
Without a quality real estate agent, you’re going to find yourself tiring of the market incredibly quickly. Remember, you’re going to be spending a lot of time with this person throughout your property search. It’s important that you respect them as a professional and get along with them personally.
3. Locate Inexpensive Accommodation
Let’s face it, purchasing a home can be incredibly expensive.
Not only are you having to save for a downpayment, but you’re also having to account for carrying a mortgage, taxes and closing costs. Remember, closing costs are generally between two and five percent of the purchase price. This is a cost that many first-time homebuyers forget to account for.
With this, it only makes sense to align yourself in an advantageous position whilst saving for a home. For many buyers, this means finding inexpensive or even free accommodation during the saving process.
This often means bunking up with family, living with roommates or finding accommodation outside of a central area. While this isn’t an ideal living situation, it’s the best way to save money fast.
4. Consider “Up and Coming” Neighborhoods
Let’s face it, finding your dream home is the best neighborhood isn’t always realistic. This might be one of those situations where you just simply can’t have it all.
If you’re really serious about purchasing your dream home, you’re going to have to be open to a number of different neighborhoods. With this, be open to purchasing in the up and coming neighborhoods within your city. While this location might not be at it’s best in the current market, it’s scheduled to arrive there in the near future.
This is going to allow you to purchase a home where the location isn’t resulting in a hefty price tag. Not only does this get you closer to purchasing a dream home, but it’s also a great investment for the future.
Are you in need of some more hot buying tips? If so, find out more here.
5. Become a Landlord
Have you ever considered renting a room or a floor within your house?
We all know that the carrying costs of homeownership can be daunting. Unlike renting, failing to pay your mortgage can result in losing your home and having it taken over by your lender.
This is why so many homeowners choose to become a landlord and rent out a room or even an entire floor in their home. In doing so, you’re creating a steady flow of income for yourself that can contribute to paying your monthly mortgage.
6. Familiarize Yourself With Home Rebates
Last but not least, why not help yourself out a little?
In many states, the government is making an effort to make homeownership more affordable. If you’re having trouble affording a home, why not see what measures are in place to help you?
In meeting with a mortgage broker or real estate agent, they’ll be sure to let you know which homebuying rebates you might qualify for. This could be anything from first-time home buying incentives to certain tax breaks for specific areas.
With such a large-scale purchase, it’s safe to say that even minimal rebates can go a long way.
How to Buy Your Dream Home
Are you looking to buy your dream home?
In 2018 alone, over 5.34 million existing homes were sold throughout the U.S. While finding your dream home might sound like a fairytale, these numbers prove that it is entirely possible.
The truth is, buying your dream home doesn’t have to be such a distant dream. In fact, with a commitment to saving money and hiring the right real estate agent, you can be well on your way to homeownership.
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