Start out by knowing what mortgage you can comfortably afford. You should meet with a lender or mortgage broker to establish how much of a mortgage you will qualify for. It’s very important to go through the mortgage pre-qualification process before you begin your home search. This will bring your house hunting into focus and give you a better idea of the houses that fit into your price range.
Not only that, mortgage rates vary considerably and it is obviously to your short- and long-term advantage that you shop around for the best rate, terms and options. You don’t want to sacrifice lifestyle for a house.
Determine how much of a home (mortgage) you can afford by considering:
1. Your annual household income.
2. Your down-payment (should have five percent of the purchase price of a home for the down payment, but ideally even more.)
3. Your debt-load.
4. Your interest rate.
5. Your monthly mortgage payment.
6. Your amortization period (length of time required to pay off the loan).
7. Your closing costs.
8. Your property taxes.
9. Your homeowner’s insurance.
10. Your home maintenance costs.
It’s really important to do your homework!
Your Real Estate Professional,