Before you jump in the car and begin your new home search, it is crucial to first determine what you can afford. Since a home purchase will likely be the biggest investment you will ever make, you will want to carefully evaluate what your needs really are and if your budget will comfortably cover those needs. Ask yourself these few key questions before you meet with a lender or a real estate agent.
Beyond just the bedroom and bathroom count, evaluate what you need in living spaces for the present and into the future. Is a formal dining room or a separate family room a necessity? Will additional bedrooms be a part of the future if your family is still growing? These extra living spaces add to the square footage and impact the purchase price you must budget for.
Consider what you can realistically afford for your monthly housing cost. Ask yourself if your anticipated budget will remain comfortable even as your family’s needs change. Along with this thought process, look ahead at your income projections to see if increasing monthly expenses will be offset by your ability to have higher income in the future.
It will also be important to have a good idea of how much you can save every month so you can cover any possible loss of income or gaps in employment during the time you own your home.
Once you have satisfied yourself with what you feel you can afford, the next step is to contact me so I can help you get started with a loan preapproval based on tangible numbers. With your preapproval, you can then begin your home search knowing that both your personal needs and budget will be met. Call or email me today and we can get you started.