1. Get pre-approved for your home loan. This means, fill out a loan application and go through the process of securing financing.
2. Explore creative financing options. During the home loan pre-approval process, ask about ways to get creative with your financing.
3. Sell your existing home first. Although selling your existing home before finding new real estate to buy can be a little nerve wracking, any inconvenience will be offset by your ability to make an offer with cash in hand.
4. Look for vacant real estate. Perhaps a seller’s job has transferred him out of the area. Or maybe a family purchased a new home before putting their existing one on the market.
5. Consider cosmetic fixers. If you’re handy with a paintbrush, a toolset and gardening equipment, consider buying real estate in need of cosmetic fixing.
6. Buy a home that’s a major remodel project. If you want to live on Lake Washington, but can’t afford a $2M home mortgage, consider buying a dilapidated cottage on a fabulous lot with western exposure.
7. Don’t discount bank foreclosures. One person’s loss could be your gain if you buy real estate in foreclosure. Although the search for a decent foreclosure may take a while, your realtor should be able help.
8. Land with a manufactured home. Sometimes, to buy a home on a budget, you need to look beyond convention.
9. An older, smaller home. Older homes are typically priced much less than newer construction and don’t tend to create buyer bidding wars
10. The cheapest house in the best neighborhood. You have your heart set on a specific – and expensive – neighborhood.
Buying real estate without breaking your budget will require research and compromise. On moving day, however, you’ll have the satisfaction of knowing that your homework paid off!