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One of the most important things 1st homebuyers should explore – how much home can they afford?
You’ve been dreaming day and night about it – buying your first home. It’s a thrilling prospect for everyone, especially first-time homeowners. With countless properties available online at your fingertips, it’s easy to begin house hunting. Though it’s critical to determine your budget as a homebuyer before you start shopping.
Determining your creditworthiness can help you learn what size mortgage you’ll qualify for and set a realistic budget. When you obtain a pre-approval from a mortgage lender, you’ll know exactly what you can afford. A pre-approval letter is required when submitting an offer. To ensure your success for the homebuying journey, contact Fran Frisella, REALTOR® of Coldwell Banker at (617) 650-3349, who will connect you with a trusted loan officer.
Prior to any significant purchase, it’s important to set a realistic budget. Buying a home is no exception. Do a reality check on your personal finances. Scrutinize your monthly income, expenses and debt-to-income ratio. This will help determine what funds you’ll have available for a down payment and a monthly mortgage payment.
Another important piece of this puzzle is your credit history. Check your current credit report for any debts you need to pay off. This will put you in a stronger position when it comes time to apply for a loan. The higher your credit score, the more access you’ll have to loans and lower interest rates.
Refer to a handy, online mortgage calculator to study property purchase prices. In fact, many allow you to figure in important, relevant factors such as property taxes, down payment amounts, interest rates and home owners insurance. This will provide a detailed breakdown of what your monthly payments would look like.
Comfort and joy in your first home start with setting realistic financial expectations ahead of time. Buying a home will likely be the biggest purchase of your life, after all.
