Finding the perfect home is tough. Toss in a tight budget, and you've got some hard work ahead of you. But don't get discouraged — you don't have to sacrifice quality of life to find housing you can afford. Once you establish how much money you can put toward your mortgage each month, consider these tips to find a home that fits into your budget.
1. Gather your sources (and check them regularly)
First things first — download the top real estate apps, or set up notifications on their websites. Services like Craigslist, Trulia, Zillow, and HotPads make it easy to filter housing options by budget and location while keeping you updated on the latest properties to hit the market. Also find a licensed real estate agent to help in your search.
2. Expand your search radius
Looking to buy in a popular city like Boulder or Denver? While trendy neighborhoods may seem appealing, broadening your search to less sought-after areas, or even suburbs, may help you find quality options that are less expensive.
3. Get a roommate or two
It's simple math — the more people you can split the cost of rent with, the cheaper your portion will be. People looking to buy a home can also consider this option. Have a spare bedroom or basement space you can fix up? Renting it out will bring in income you can put toward your mortgage; just be sure to check what restrictions your chosen loan program has regarding this option.
4. Reach out to your social networks
You never know what great deals you might find by asking around. Who knows — you might buy a house from a friend of a friend who's willing to negotiate. Some people may be willing to sacrifice a bit of the asking price for the ease of selling to someone they trust.
5. Consider foreclosures
Foreclosed homes are often some of the cheapest on the market. While many are fixer-uppers in need of a lot of work, you can put the money you save on the asking price toward renovations. Just make sure you get a quality inspection to know what you're signing up for.
6. Be willing to compromise
Sure, we all want in-unit washer and dryer, covered parking, a brand new kitchen and tons of sunlight. But these desirable amenities may drive the price up. Prioritize what you can't live without and be willing to make concessions on the rest.
7. Get assistance
Once you find a place that fits the bill, CHFA may help you seal the deal. With down payment and closing cost assistance for buyers, CHFA is an excellent resource for those hoping to find quality housing on a tight budget.
If you have a steady income but are nervous about finding your next home on a tight budget, we might be able to help. With our down payment and closing cost assistance programs, your dreams of homeownership may be within reach.