Financial Fitness

I've mentioned before that my daughter, Alyssa, and her husband bought their first home about 18 months ago.  I was licensed in real estate as well as mortgages at the time so I helped them find their home in Gilbert, AZ.

It was a long and difficult process!

Because they wanted to keep their costs below the cost of rent they were looking near the very bottom of the market, which can be a discouraging place to be.  Sometimes they felt like they would never find a reasonable house for their family in their price range! 

But we all persisted and in the end they found a house that has done a great job of accomodating their expanding family.

I've recently spoken to other clients who are feeling the same way in their process of finding a home for a bargain, so I thought it might be helpful to give a few pointers for those hunting near the bottom of the market:

• Keep your spirits up.  You'll find something!  You just have to be patient and think through things carefully.
• Do your research.  Get preapproval to know how much you can afford and do some of your home searching online in advance so you have a good idea of what you can afford.
• Prioritize.  Get a really good idea of what you can live with and what you can't.  Is a big back yard on your must-have list or are you dying for an updated kitchen?  Know these things before you go house hunting!
• Price out basic upgrades.  New flooring and countertops can sometimes make a house look brand new and they don't cost an arm and a leg.  Know what you can do yourself, what you can hire someone to do for a small investment, and what really can't be changed.
• Find a real estate agent who listens to you and isn't incessantly trying to get you to buy a bigger, better house.  Having support can be critical.

Many people never get to own their dream house because they never buy their first house, so if you're buying at the bottom, keep in mind that it's just a stepping stone!