How Much Home Can You Afford?

Posted by Ken Richter on Tuesday, June 9th, 2020 at 4:40pm.

The Calgary real estate market was hit hard when coronavirus shut down the world. Despite this, forecasts show that this summer we're going to see a market pick up. Not only are people back to work and restrictions on daily life lifting, but summer is always an incredibly busy season in real estate. If you're considering making a move, contact Ken Richter today at 403-630-6363! He can help you strategize how best to enter the market based on your varying needs. 

One of the biggest aspects to purchasing a home is figuring out 1). How much home you need and 2). How much home you can afford. Figuring out how much home you need is usually the easy part. You need to consider how many people will be living in the space now and in the future. You need to consider how much backyard space or parking space you'll need. You need to consider number of rooms, living areas, kitchen space, etc.. Deciding how much home you can afford is also highly personal. 

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. It also makes your eventual offer look even more good to sellers if you are pre-qualified!

Here are some factors you need to consider as you determine what mortgage you're comfortable with holding, regardless of what the bank qualifies you for:

  • Annual household income
  • Down-payment saved so far
  • Debt load
  • Interest rate you're able to secure
  • Prospective monthly mortgage payment
  • Closing Costs
  • Property Tax
  • Home insurance
  • Required Maintenance and upkeep
  • Lifestyle needs
  • Life goals

Make sure to really put some thought into all of this, and again, you can call Ken directly at 403-630-6363 to begin to strategize! 

 

 

Your Real Estate Professional,

Ken Richter

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