Are you thinking about buying a home in the near future? If so, you should take one crucial step before all others: determine what you can afford.
Purchasing a home is one of the most significant transactions you’ll ever make. With this in mind, you should carefully evaluate what will work for you before you dive into the process. Even before you contact your lending professional or real estate agent, ask yourself a few key questions.
What are your needs for living space, both now and in the future? What resources will you be able to utilize for down payment and closing costs?
Beyond this, what do you realistically think you’ll be able to afford each month? What additions to your family do you anticipate, and what impact will they have on your family budget, both in terms of monthly expenses and household income?
Lastly, how much will you be able to save each month for the proverbial rainy day, in case you experience a reduction or gap in income?
Once you answer all of these questions, then you can start talking to people who are in a position to help you finance and purchase a home.
Your first stop is your mortgage professional in order to get some tangible numbers. Here, you’ll take all of the guesswork out of what you think you’ll be able to afford.
Next, with solid numbers and a preapproval in hand, you can contact a real estate agent. This agent will show you appropriate properties based on what you learned with the mortgage professional.
Buyers who don’t use this method often search for homes randomly and end up falling in love with one that is ultimately out of reach. Save yourself time and heartache by using this due process to find the perfect home for your needs and budget.
Have you carefully considered the questions listed? When you’re ready for the next step, contact your mortgage professional to get started.