When beginning the home buying process, your mortgage lender will determine your home buying budget. This spending plan is based on how much money you make, how much debt you have, and how much you really feel comfortable spending every month. Once your home buying budget is created, we should stick to it.
Why do I have a home buying budget?
So that you don’t fall in love with a house that you can’t afford. If your house budget only allows us to look at homes at $250k and below – do not, I repeat, DO NOT start looking at homes that are $300k in hopes that the sellers will reduce the price just for you. Because I’m here to tell you, they won’t.
Will the home seller negotiate on the list price?
New Orleans home sellers definitely negotiate the price, whether or not you need closing costs and other items. But if you’re asking for $50k off of a list price on a house that is only $200k, it’s not going to work out in your favor. Real estate in the New Orleans area has been in a seller’s market for a while. While we hope to see that trend start to shift and become more balanced – we aren’t there yet. When looking at houses for sale, we should stay within your home budget parameters.
What if I really love a house and it’s only $10k over my home buying budget?
In today’s current market with interest rates, going over your budget by $10k will cost you approximately $50/month. Are you ok with your monthly payment jumping up by that much?
Pot roast tastes the same in an outdated kitchen
I know your friend Karen has a chef’s kitchen that she only uses to drink dry chardonnay in and it’s gorgeous. But you aren’t Karen and you have different finances. If your budget means that you have to get a kitchen that looks like it hasn’t been updated since 1968, just embrace it. Because your pot roast is going to taste the same even if yours comes from an avocado green oven.
Why do you care if I stay within my budget?
Because we want to see you enjoying your life and not being “house poor”! If Friday night sushi dates or buying Krewe sunglasses are important to you then we shouldn’t break the bank.
I have champagne taste on a beer budget
You are not alone! Because all of us have a tendency to look up houses that are just outside of our grasp and swoon over them. But remember that you have worked hard to purchase a home for yourself. Blowing your house budget for someone else’s renovation is not always the best thing for you. Sweat equity can go a long way and so can good, old-fashioned saving for upgrades.
Let’s find you a home in your budget! Text us now!