Affordability Options for First-Time Home Buyers

If you are a first-time home buyer, you may be wondering how you’ll afford your new home. The good news is you have options. Now buying a home isn’t as difficult as it once was because of the sheer number of opportunities popping up both where property and finances are concerned.

Try a fixer-upper. This term is used to describe a great piece of property with great potential. Perhaps you’ve looked at that awesome house on the corner for years, but never considered buying it because it needs work. It’s time to take another look. Did you know you could probably buy that home at a lower price, then pay to fix it up for still a lower cost than buying a new home that doesn’t need work? The cost will be even lower if you decide to do the work yourself.

Even if you do have to hire it out, you can still save money in the end. While it’s true the more work it needs the more it will cost for materials and labor, it’s also true that you can come down on the asking price quite a bit and still potentially buy the home. Consider this as an option, especially if you have your heart set on a particular property you’ve overlooked due to maintenance.

Consider purchasing a small home. These are often called starter homes because they aren’t as highly priced as larger ones. They make a great place to begin your life as a home buyer and begin raising a family. You can always sell it and upgrade to something larger when the opportunity arises and you’ll still be getting a lot out of your investment.

Buying a smaller home will also give you the chance to be choosier about the neighborhood. For example, if you’ve always wanted to live in a subdivision with a home owner’s association, buying a smaller home may allow you to do this until you can move into a larger one.

Buy a home that is close to your place of employment. This will cut down on the cost of commuting every day. If you’re saving money in gas and car maintenance, you’ll have more to spend for a house payment each month.

Consider your needs instead of wants. Sure you should definitely buy a home you like, but if you are trying to find every feature you desire the first time around, you’ll probably find yourself unable to afford them. Instead, go with a home that meets your needs and price. Remember, you will be building equity over time and can move up into larger homes with more features as you go along.

Becoming a first-time home owner is exciting. You are making an investment that will bring you a good return and best of all, the home will be yours. Give this process careful consideration and you may find yourself moving up more quickly than you thought.

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