Today I’d like to quickly walk you through how you can determine what your budget should be when you’re buying a home.
First things first, talk to a mortgage professional. They’ll take a look at your whole financial picture and help you understand what you’re pre-approved for along with your credit history. A financial expert will be able to give you clear guidance as to what makes the most sense for your situation.
Now, a bank may be willing to loan you “x amount of mortgage dollars,” but that doesn’t necessarily mean you should take out the maximum amount. Make sure your month-to-month payment is within an affordable range, and that you’ll have money left over for unexpected house-related expenses or otherwise.
You’ll also want to look at various demographic areas in your local market. This will allow you to pinpoint what area you’d like to live in and where the home is located in proximity to work, recreational spots, etc. Additionally, you’ll be able to determine the costs associated with that particular market. Some buyers are more than willing to pay an extra $100 monthly to live in an area that best suits their lifestyle.
In a nutshell, that’s how you can determine your affordability for a home before you kick off the home buying process. If you have any questions related to today’s topic or real estate in general, please reach out to me, and I’ll happily get you scheduled for your free consultation. I look forward to hearing from you soon!