Consider Size (of Home and Budget) when Buying a Home

Approved mortgage application from someone who stayed within their budgetNow that we’re really feeling the heat of summer and there are tons of homes on market, we’re in the middle of real estate professionals call the “buying season” and before you start the process of
buying a home
, it’s important to make a few decisions first.  The Equifax Finance Blog explores some of the questions you should ask yourself at the beginning of your home search in the recent article, “
How Big of a House Do You Need?
A big part of deciding how big of a house you need is to determine what you can afford and how to make your needs match it. This way, you keep your mortgage payments manageable so that you can get by comfortably month to month as well as continue saving money for the future. You can start the process by getting a lender to give you a prequalification letter, which gives you an amount to work with, but keep in mind that just because a bank is willing to loan you a certain amount, it doesn’t mean that you have to take out the full amount – you can always take out less, to keep your payments manageable.  Also keep in mind that the mortgage payment is just part of the cost per month of homeownership, with utilities, homeowners’ association fees and other expenses due each and every month.
With all that in mind, it’s good to sort your requirements for a new home into things that you must have and things you could do without. You may find that you don’t need as much of a home as you thought. There are lots of benefits to smaller homes, from less maintenance to lower utility costs.
For more great ways to
save money
and learn about everything from real estate to credit ratings, explore the Equifax Finance Blog.