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By: Lori Roberts

July 10, 2019

Buying a House on a Budget!

Are you searching for a home and looking on online? And all the homes that you vision yourself living in are over your budget? You know the perfect home, the layout, large kitchen, and backyard for kids, bbq space, or dogs and they are all very pricey, and you are frustrated. You keep looking for your perfect home it must be out there somewhere, I can give up the large backyard, open floor plan put nothing is in your price range.

Working with a tight budget can be frustrating but it can be overcome if you are determined to find your dream home. Working with a Realtor/Broker to meet your goals is the best decision that you can make. Together, as a team you and your Real estate professional can decide what your absolute needs are and whether a home is the right one for you. Working without a professional and on a tight budget can lead you to make a purchase that you could regret very quickly.


Most buyers have done the math and have an idea of how much you think you can afford to spend on a home. But you will not know for sure until you receive a mortgage pre-approval from your Mortgage Broker or bank. Realtor/Brokers have a list of mortgage brokers that they can recommend in helping you get a pre-approval letter. Mortgage Brokers are very knowledgeable with understanding any Government provided incentives that may be available to you. First time home buyers, you may have family members that may “gift” you with the funds required for a larger down payment. USDA loans are available in certain rural/suburban locations which offer 100% financing. FHA loans, 203k and many more options are available to buyers.

It some cases buyers are not able to get a pre-approval letter, there are other options to improve your situation. Paying down credit card debt as quickly as possible, pay more than the minimum payment due. When looking at credit score utility and phone bills will soon be added to the scoring processing so be sure to pay all bills on time.

Want versus need

What must you have? Maybe the 5 bedroom pool home located on 1 acre would be nice, but it’s way more important to have a home that meets your needs and your budget. The last thing your Realtor/Broker wants is for you to be house poor because you over extended.

Remember the home can be upgraded things can be added but location you can never change. Make some compromises but don’t give up everything. Focus on the must haves and what is important to you and your family, and express this to your Realtor/Broker. The key to finding a home is working with an experienced Mortgage Broker and an experienced Realtor/ Broker.

Not all homes are going to be perfect look at small repairs adjustments, paint, carpet items that are not too expensive to change. Focus on the location, size of home, and overall layout. Some homes can be a money pit and that is what your Broker /Realtor is there to help you determine.

Most of all be patient Realtors/Brokers have helped many homeowners and they are a wealth of knowledge and can offer you a lot of advice off of past experience. Together, you will work to find you a home that meets your needs and your budget.