Your perfect home is “out there” somewhere! After you have been pre-qualified for a mortgage, you will know how much you are comfortably able to spend on a mortgage payment (including all applicable fees, taxes, etc.). Even if you don’t think it’s possible to find your ideal home on your current budget, you can take a first step in that direction.

The first step after pre-qualification is to make a list of all the features you want/need in a home. These should include number and size of rooms, type of home (detached, town home, condominium, etc.) and nearby community amenities. Then divide your list by what is non-negotiable and what are “nice to have” features. Your real estate broker will be better able to better serve you by knowing not only your home price range, but also the features that are important to you.

Some options to consider: Purchase a home that meets most of your “must haves” and plan to set aside savings each month toward a remodeling fund. If you love the family room and bedroom sizes but want to update or remodel your kitchen, you can move in now and begin getting estimates for your dream kitchen.

Another option is to buy a home that is slightly less than the maximum you can afford now. It may not qualify as your dream home, but you will be accumulating equity in your house and after several years, you’ll have additional funds available to finance another home that does offer everything you hope for in a home!