Knowing what you can afford is every bit as important in the home finding process as what kind of home you're looking for.
Step 2: Determine how much you can afford
Affordability includes three things; how much you will need to borrow, how much you have for a down payment, and what payment you're comfortable with each month.
Set a budget for yourself and decide how much you are comfortable with and how much you can afford to invest. Be realistic. Most lenders suggest that your payments be no more than 28 percent of your total monthly income. Don't forget to include taxes and insurance if you plan to escrow.
With a payment range in mind, it's time to talk to a lender to investigate your financing options and begin the pre-qualifying process.
Look for the Step 3: Get Pre-qualified or Pre-approved by a Lender email coming in the days ahead.
Contact us if you have questions about the home buying process or to learn more about your financing options. And if you'd like to get these steps sent directly to your email, let us know.