A new survey by Lending Tree released Wednesday found that 64% of homebuyers are willing to go over budget to find their perfect house, compared to 25% who said they would not.
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The sentiment was most prevalent in millennials, with more than 3 out of 4 (76%) respondents ages 24 to 39 saying they’d stretch their budget to buy their dream home. It was also high in men, with 74% agreeing.
Finding a home within budget was the top concern reported by 27% of homebuyers, following narrowly behind location (30%) and slightly ahead of enough space (24%).
More than a third (67%) of all homebuyers surveyed said that finding a home within budget was the most stressful part of the process. As for first time homebuyers, nearly half (48%) stress most about finding a home within budget, compared with 31% of repeat buyers.
Meanwhile, about 1 in 6 buyers (17%) attributed the stress to low housing inventory in their area, while another 16% attributed it to trying to sell their current home.
Lending Tree's Chief Economist Tendayi Kapfidze warned homebuyers in the report that they should be "very cautious about going over budget"
"Many people underestimate the maintenance costs of owning a home," Kapfidze wrote. "If you are stretched financially and underinvest in maintenance it can diminish the value of your home."
The real estate lender recommends that homebuyers get a mortgage preapproval, make a larger downpayment on a new home, and limit their contingencies in order to make the homebuying process less stressful.
The findings come as new home sales surged in July by 13.9% to a seasonally adjusted annual rate of 901,000 units last month, the highest level since December 2006.