What Can I Afford?
When you’re shopping for a home, there are a lot of things to think about. If you want to avoid stress and frustration, it is important to make sure you set the budget for your new home before you start the shopping process.
Why is this so important? A couple reasons:
- When you sit down with a Realtor or begin looking online for your dream home, you don’t want to spend time (or waste it) looking at homes and properties that exceed your budget. Worse yet, we’ve seen clients pick their home first and then obtain their financing later. This can lead to a lot of stress especially if the price of the home makes it difficult for you to qualify for the loan after you have already fallen in love with it.
- Secondly, most good Real Estate Agents will want to make sure you have been pre-approved with a local lender before showing you homes for many of the same reasons we have already mentioned above.
- Lastly, and we think most importantly—you need to be comfortable with the payment, price, and overall cost of the home you are going to be purchasing. Your lender may tell you that you can afford the payments on a $300,000 mortgage, but you need to make sure that you are content with the monthly payment that comes with that mortgage. No matter who tells you that you can afford it. You shouldn’t let anyone pressure you into taking on a payment you don't think you can afford. Your mortgage lender will review your income, assets, and overall financial situation to calculate your approval amount. However, you are the one that is going to be making the payment. You need to be comfortable with the decision you make.