of your dreams, and finding out you can’t afford it. You have to work within your price range, and not only use that as a general guide, but also as your starting point in going forward. We talked about this in Chapter 1, when we outlined the financial steps you need to take before starting the journey of purchasing a home, which include improving your credit score, saving for a down payment, researching recent home sales, and determining what you might be able to afford. So, know your budget! Don’t just think about the overall home sale price; consider the down payment, the monthly mortgage payments, property taxes, homeowners’ association fees, maintenance, and closing costs. Too many buyers —both first-time home buyers as well as second- and third-timers — make the mistake of not factoring in and accounting for all associated expenses in buying a home. For example, a home might seem affordable to you at first glance, but there are always “hidden” expenses involved, which, if you aren’t prepared for them, could lead you into financial problems.
If you’re not sure where to start, try an online mortgage calculator, which will take various factors into consideration, including your monthly income. It also never hurts to pay a visit to your
bank to see what will be affordable for you.
One tip is tomake a detailed examination of the housingmarket to figure out your price range, as well as determine any issues you might have in meeting your basic needs. Do research on
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