HOMEBUYING: Separating needs from wants in your next home
- Noir Holdings, LLC
- May 26
- 3 min read
Home prices continue to rise. Interest rates remain on the higher side of comfort for your budget. The selection of available homes for sale continues to be small. What can you do as a homebuyer today?
Understand wants versus needs
Before you tour a single home, understand your wants versus needs. What elements in your home do you absolutely need – such as minimum three bedrooms, at least two full baths, and no stairs.
These are items you cannot compromise on. You will not purchase a two bedroom home. You will not buy a home that only has one full bath. You will not buy a two-story home. Write this all down. You are not going to flex on these elements.
Wants are the “would be nice” elements. These are things that are a bonus, but they aren’t going to drive your home purchase. An extra bedroom, perfectly updated bathrooms, a three-car garage, and more would be much appreciated in your next home. If these elements came with the home you’re going to purchase without going over budget, it would be a wonderful addition, but only if the home meets all your needs first.
Your needs for your next home may bring your most-desired home to a certain entry point for pricing. You will start centering in on this price the more you tour homes. You may not be able to get all your needs met in one home in the town you first focused on because all the three-bedroom, two-bath homes are above your price point. You may have to make some compromises to purchase a home you can afford.
Where can you compromise?
There are a multitude of ways to compromise to find a home. When you are looking for homes and trying to reduce the cost of a home, you may consider living in new towns. You may undertake a longer commute. You may opt to drive to work and school instead of taking public transportation. These are all compromises you may make in order to purchase a home.
Just remember that you simply cannot flex on the needs portion when you compromise. The needs you have are the minimum you must have in your new home. These needs are the most important features of your new home. In fact, you should not tour any homes that do not meet these needs.
Get preapproved for a home loan
Before you start looking at any homes online, and start dreaming about owning them, it’s imperative that you visit with a mortgage lender and apply for a home loan. This process will help you understand exactly how much home you can afford to purchase.
This price guidance will also tell you whether you can meet all your needs in a home in your price range. If the town you had your heart set on only offers homes with three bedrooms and two full bathrooms above your mortgage approval amount, you’re going to have to change where you are looking for homes. Remember that your needs have to be met in the home AND you must stay within your price range.
Keep in mind that your loan preapproval does NOT tie you to that lender. You can change lenders if you don’t feel that the lender is offering you a mortgage that fits your financial goals.
Looking to buy a home?
Check out Noir Holdings’ updated homes available in established neighborhoods in suburban Chicago: www.noirholdingsllc.com Buy direct from Noir Holdings and save!
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