What You Can Afford
One of the first steps in the homebuying process is to fully understand your finances. It’s not as fun as looking at homes, but it’s important and necessary to help you determine how much you can afford.
Understanding What You Can Afford
Buying a home requires that you get a firm handle on your finances, gathering your supporting documentation and answering a handful of questions, including: What is your gross income? What do you spend each month? Do you have credit card debt? How much do you have in savings?
Aside from having a firm grip on your income and expenses, it’s equally important to understand the role your credit, mortgage rates and home-related costs play in determining what you can afford.
Understanding your credit
Your credit score and history play a prominent role in determining your eligibility for a mortgage. As such, it’s vital you recognize the value of having strong credit when buying a home. See More
This is a key imgredient in finding out how much homes you can afford, and it’s importantto watch them carefully if you’re in the market to buy a home. The lower the rate, the better; even a small rise in rates can make a home that was once affordable, unaffordable. See More
You’ll have to make a downpayment of at least 3% – and generally between 5 and 20% of your home’s purchace price to qualify for a mortgage. Also, when you get a mortgage, you’ll need to pay closing cost that include an appraisal fee, credit report fee, tax srvice fee and more. These cost usually run between 2 and 5% of your purchase price. See More
Click Here for a: Mortgage Rate Calculator Tool
If you are interested in Buying a Home and have Questions, please contact The Wagner Team , we will be glad to help. “A Higher Standard in Real Estate”.