Are you ready to buy a home—but not so sure you can afford your local housing market? You’re not alone. Many hopeful buyers are experiencing affordability challenges in 2023. Fortunately, there are ways to tackle these challenges and afford the home you’ve been dreaming of!
1) Keep saving. This might not be the very first answer you want to hear, but it’s important to stick to your budget and avoid buying a home you can’t afford. You might just need one more year of saving to be able to afford the home you want. It will take patience, but it will all be okay.
2) Adjust your must-have list. Do you really need 4 bedrooms, or is 3 plenty? Does the home have to be on a 1-acre lot, or can you be just as happy with a backyard half the size? Do you need a state-of-the-art kitchen right away, or can you gradually remodel it yourself over the next few years? If you’re willing to reconsider your must-haves, you’ll have more homes to choose from in your price range!
3) Look outside your local housing market. If you can’t afford the housing market you’re currently living in, consider broadening your search. That might mean looking for a new job in a more affordable part of the country, or it might be as simple as expanding your search radius by a few extra miles. Different cities and counties, even within the same state, can have drastically different housing markets.
4) Increase your income. Whether you ask for a raise or start looking for a new job altogether, increasing your income could be the solution to your home affordability challenges. But before you start talking to anyone about your desired salary, be sure to work with a lender or real estate agent to determine how much monthly income you will need to be able to comfortably afford the type of home you want. Remember, it’s not just the monthly mortgage payment—you also have to consider the down payment, closing costs, and other expenses associated with buying a home. The experts at Ramsey Solutions recommend budgeting for a monthly house payment that is no more than 25% of your take-home pay.
Remember, overcoming home affordability challenges often requires patience, perseverance, and flexibility. It's important to do thorough research, seek professional advice, and explore multiple options before making a decision.