Can I Afford To Buy a Home?
The first step is identifying your needs and determining your budget.
If you’re looking to buy a home, there are several questions you should take under consideration. The answers to these questions will help you decide whether or not now is the right time for you to take this step.
- What size home do I need?
- What will utility payments be?
- What is my monthly budget?
- What kind of monthly mortgage payment can I afford?
- What kind of savings do I have set aside for a down payment?
Remember, home ownership comes with its fair share of challenges, financial and otherwise. You’ll want to consider the cost and energy of maintenance, repairs, home insurance and taxes. Once you have settled on budget, you’ll be ready to move forward.
The second step is meeting with a loan officer.
They will help you understand what you are qualified to borrow from the bank to finance your purchase. Together with you, they will:
- Determine if you are pre-approved for a home loan based on basic information. Sometimes this can be done on the phone in as few as twenty minutes.
- Create a budget that includes taxes, home insurance and association fees (if purchasing a townhome or condo) to help you determine a comfortable monthly payment.
- Create a plan for being pre-approved in the future if you currently don’t qualify for pre-approval.
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