Week 5

How to Find the Perfect Home for You and Your Budget

This 8-week series, How to Find the Perfect Home for You and Your Budget, is here to show you that yes—you can find a home that fits your needs, your lifestyle, and your budget. Buying your first home is a huge milestone, and with the right plan in place, it’s absolutely possible to feel confident and excited every step of the way.

Even if you’ve saved up and feel financially ready, your first home purchase will still require some planning. You’ll want to explore mortgage options, understand what you can comfortably afford, and make sure your financing strategy supports your long-term goals.

Let’s break it down.

Before anything else, here’s what you shouldn’t do.

Whether it’s your first home or your tenth, never decide on a home price before talking to a lender.

Too many buyers say,

“We’re going to buy a home for $500,000,”

and then immediately start going to open houses in that range—without having a clear financial picture.

I understand—it’s exciting to look at homes. But guessing your price range or skipping this step can seriously derail the process. You could fall in love with a home that turns out to be unaffordable or not aligned with your financing options. I’ve seen it happen more than once.

Talking to a lender early helps you avoid costly mistakes and gives you clarity about your true budget.

Do This Instead

These four steps will help you build a smart, realistic home financing plan—so you’re ready to buy with confidence.

1. Start by deciding what you want to pay per month—not total price.

This is one of the most important decisions you’ll make. Instead of starting with a home price, start with your ideal monthly payment. What can you comfortably afford each month—including taxes, insurance, and any HOA fees?

Once you have a number in mind, your lender (and I!) can help reverse-engineer that into a price range that fits your budget and goals.

💡Quick tip: Just because a lender approves you for a high loan amount doesn’t mean you should spend that much. Many buyers are approved for more than they actually want to pay.

Not sure what monthly payment is realistic for you?

Use your current budget as a guide. Can you handle a bit more than you’re paying in rent? Need to stay the same? Most experts say 30% of your monthly income is a healthy target for housing costs.

And if you haven’t made a detailed monthly budget yet—this is the time!

2. Explore first-time buyer loan programs and financing options.

There are several loan options that make buying your first home more affordable—even if you don’t have a large down payment saved.

Some common options include:

FHA loans – Designed for first-time buyers with lower credit scores or smaller down payments

Conventional 3% down loans – Great if you have a solid credit score

Down payment assistance programs – Available in many counties and cities

Grants or forgivable loans – Often based on income or location

Depending on your financial situation, one of these options could make homeownership much more accessible. That’s why it’s so important to talk to a lender early and explore what’s available to you.

3. Understand how the current market could affect your plan.

Even for first-time buyers, the housing market can play a big role in your financing and homebuying strategy. Things like interest rates, inventory levels, and time of year can affect how quickly you’ll need to move and what kind of negotiating power you’ll have.

Let’s talk about what’s going on in your local market and what that means for your timing, your budget, and your home search strategy.

4. BONUS  – Mortgage tips to know before you apply

Here’s what most first-time buyers don’t learn until after they’ve applied. Let’s get you ahead of the curve:

• Your loan amount affects your monthly payment—but not drastically. Every $10,000 added or subtracted from your loan changes your payment by about $65–$75/month.

• Your credit score matters. It affects your interest rate and loan options. The better your score, the more favorable your terms.

• You might not need a 30-year fixed loan. If you plan to stay in the home for fewer than 5–7 years, an adjustable-rate mortgage (ARM) could be a better fit with lower initial rates.

• Be cautious when paying “points” for a lower interest rate. Points are upfront fees that reduce your monthly rate. It might be worth it—but only if you’re planning to stay in the home long enough to see the savings.

Always ask your lender for a full breakdown of fees.

Don’t just focus on the interest rate. Watch out for hidden fees, penalties, or unnecessary costs that can sneak in.

I’m Here to Help!

You’re already ahead of the game by learning how financing works before jumping into house hunting.

The most important takeaway: Don’t wait to get your financial plan in place. The earlier we talk through your budget, timeline, and loan options, the more confident—and prepared—you’ll feel.

I hope this week’s blog post in the How to Find the Perfect Home for You and Your Budget series has been helpful. Next week, we’ll bring it all together—budget, location, and your dream home criteria—so you’re ready to take that final step!