How Much Home Can you Afford
To get a rough idea- you can go to the Mortgage Calculator at the bottom of this page, but if you are getting serious about buying a home, you should definitely talk to a local lender. There are so many loan products out there with different down-payments, interest rates, etc. that you want to make sure, you get the whole picture, before you sign up for a long term commitment. Make sure you compare apples to apples. If one lender offers a better interest rate, do they have higher closing cost to make up for it? And which one is more important to you? Have you saved up for a substantial down-payment or would you rather put less money down and have a higher monthly payment? So many questions so many different options, but it is an important ingredient in a successful home search knowing how much you can afford. You don’t want to fall in love with a property only to find out it’s outside your price range.
That’s why I recommend getting a Mortgage Pre-Approval. This is a document from your bank or other lender stating how much of a mortgage they are willing to give you. There are two advantages to getting this pre-approval:
- It gives you the peace-of-mind of knowing you can afford homes you view on the market, and won’t have problems arranging financing.
- It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer. And talking about the offer: How does it all work? Here is a quick overview about the process:
Have questions ? Send me an email or call me 706 414 2552.