Today’s mortgage rates are higher now than they were last year. For buyers, this means sacrificing some wants over needs.
If you are thinking about buying a home, you don’t have to give up that goal. But in today’s market, there’s no denying that higher rates affect how much it costs to borrow money for your purchase. Danielle Hale, Realtor.com’s chief economist, says,
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and the years ahead.”
With this in mind, you need to be strategic when it comes to your wants and needs in a home.
First, get pre-approved for a mortgage. Pre-approval helps you understand what you can borrow for your loan, which is crucial knowledge when crafting your wants and needs list. Not only that, but pre-approval shows sellers you are serious when making offers.
Next, make a list of must-haves. If a home you’re looking at doesn’t have one of the items on this list, move on. Common must-haves include number of bedrooms and bathrooms and distance from a workplace. In essence, these are not merely wants — these are dealbreakers.
Your next task? Make a list of nice-to-haves. These are wants that you would enjoy having, but could theoretically live without. Examples include garage or home office space, a front or backyard, and additional parking.
Your last task is to make a Dream State list. This list is comprised of everything you’d want in your perfect home. These are not features you necessarily need, but would be great to have. Wants in this category could be anything from a farmhouse sink to multiple walk-in closets.
Once your three lists are set in stone, show them to your real estate professional. They can help you refine further, coach you through, and find a home that suits your wants and needs. If you’re ready to begin your journey to homeownership, contact your local Surterre Properties agent today at SurterreProperties.com.
Source: KeepingCurrentMatters.com
