Setting a Budget
The first thing to do is to take personal account of your family’s household budget. If you are not sure where to start, don’t worry…many people don’t.
Your local mortgage lender will pre-approve you for a pre-determined mortgage amount. That amount is based on the amount of income you earn and debts that you owe. He or she will also give you some payment quotes and financing options based on different types of loan programs. Choosing the right loan program means matching up your options with the amount of down payment you have available, your credit score, and your overall financial profile.
Once armed with this information, you can set your own price range based on not only what you qualify for but, what you are comfortable with based on your overall family financial budget and goals. If you are not comfortable with a mortgage payment that exceeds $1,500, then don’t look at homes priced high enough to make your payments greater than that amount.
Again, your local mortgage professional can provide this information so you can start house shopping with confidence.