- Can you afford a new home? A mortgage is a big financial commitment. As a first-time homebuyer, you will want to figure out how much you can actually afford. I can help. I will give you a free credit and loan analysis. This information will give you an idea of how much of a home you can afford.
- Looking to purchase a new property? The first step is getting pre-approved for a mortgage, which is an essential part of the process. Based on your current financial situation, the pre-approval will tell you the loan amount you qualify for. A mortgage pre-approval also gives you a detailed look at what costs you could expect to pay on a loan.
- Income to qualify. Are you an hourly, salary, or commission employee? Are you self-employed? Not all sources of income are calculated the same. Hourly and salary employees have their income calculated based on their pay stubs and w2 income. Commission employees and self-employed borrowers generally have their income calculated on a two-year average. If you are considering a job change, it is advised that you try to postpone that until after your loan has closed. If you cannot we will need to verify your new job position, and you need to provide income documents confirming the new position.
- Make an offer on a new home. When looking to write an offer for a new home you may need to consider offering more than the listing price. The current housing market is very competitive and knowing the maximum purchase price you can afford is very important. Home shopping can be an exciting process, but it’s important to remember that the listing price is not the only factor to consider. There are several other costs are associated with purchasing a home. On top of your down payment, there are closing costs and pre-paid items such as property taxes and homeowners insurance also known as an escrow account. It’s also important to factor in the long-term costs of owning a home, such as ongoing maintenance and repairs. You will need to think about this and prepare yourself for these additional costs when you are considering the new home you are purchasing.Before you start shopping for your dream home, sit down and create a realistic budget that takes all of these factors into account. This will help you avoid any unpleasant surprises down the road.
- Be prepared for additional potential costs on top of your loan’s closing costs. Other fees that could be part of your offer are having a home inspection and getting a home warranty. These are out-of-pocket fees that are not part of your loan closing costs. You’ll also want to think about the cost of moving. Moving costs can include things like hiring a professional mover, renting a moving truck, and paying for storage. These one-time expenses can add up, so it’s essential to be prepared.Closing costs are fees that are part of the loan process. Closing costs can include loan origination fees, appraisal fees, title insurance, closing document fee, recording fees, etc.
- Let your real estate agent and mortgage lender help you. Now that you understand what you can afford and what you want in a home, it’s time to start looking for properties. You should work with your real estate agent to find listings that fit your criteria and consult with your mortgage lender to get an idea of your monthly payments. Your real estate agent can help you understand each property’s details. Your mortgage lender can give you a preliminary estimate of your monthly payments, based on the size of the loan and the interest rate.
By working with both your real estate agent and your mortgage lender, you can better understand what you can afford.
- Stay focused yet flexible as you search for and tour homes. When you’re shopping for a home, it’s essential to stay focused on what’s important to you while also being flexible enough to see as many homes as possible. This way, you can quickly eliminate ones that don’t meet your needs and focus on those that do. It’s also important to be realistic about what you can afford and what’s available in your area. So, start by filtering based on your budget and location, then take a closer look at the homes that remain.