You can’t shop for homes until you know your budget.
To find your housing budget, determine the monthly payment you’d be comfortable making on a home. Then, use a 3-in-1 mortgage calculator to “work backwards” toward your purchase price.
Once you know your maximum purchase price, it’s time to connect with a lender, who will tell you whether you could be approved at your intended home purchase price.
This process is known as a pre-approval. It helps your offer stand out when you finally find a home. It also helps you to avoid the heartache of falling in love with a home you can’t afford to buy.
Once you have your budget set, look for homes that fit.
Searching for homes in a specific price range will narrow your search results for you and will also help guide you in choosing an appropriate location. For example, homes in the suburbs may be more affordable than homes closer to a city’s downtown district.
Keep in mind that it is important to look at houses that don’t take up your full budget.
In addition to the price of your home, you should leave room in your budget for moving expenses, closing costs, and renovations to the home, if necessary.
The information contained on this website is for informational purposes only and is not an advertisement for products . The views and opinions expressed herein are those of the author and do not reflect the policy or position of Brokerage. Source: The Mortgage Reports