What is your budget for your home?

by Mike Yeo on April 20, 2013

What is your budget for your home?

We talk with lots of folks weekly about wanting to buy their first home or their next home in Frisco TX. They share what criteria they are looking for such as how many square feet, number of bedrooms, ideal location, what they would like to have in the house, basically what their dream home might look like.

When I ask them what is their budget for their home, I can feel an awkward silent. Then a uncertain answer like ….”ummm, I don’t have a budget” or “anywhere between $250,000 to $350,000” or best yet “I am qualify for any amount”.

Well, I am not trying to be nosy about your financial situation but there is a good reason why budget is important. A budget can help to:

  1. narrow down your location. Throughout the city of Frisco, there are communities with different price range. Your budget will help you to determine where you might want to look.
  2. narrow down what criteria is realistic. Price of a house will kind of tell you what you should expect. a 4 bedroom 3.5 bath house of $450,000 is going to have different finish compared to a 4 bedroom 3.5 bath house of $250,000.
  3. your budget will help you determine what your monthly mortgage will be. Remember that you mortgage not only consist of your house payment but also your property tax.
  4. your budget will also help to determine what loan program might be best for you. You need to think about your down payment and how much you will need to bring to the title company when you close on the house.

Having a budget is a great way to start your home shopping process. You don’t have to spend your entire budget but you will be able to set  your expectation of your next home may look like.

So, don’t be afraid to share your budget with your Realtor  We are not going to sell you something you cannot afford. We just want to start off your home shopping with a realistic expectation.

If you are shopping or getting ready to shop for your next home in Frisco TX, give us a call. We would love to help you find your next home.

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