payments, property taxes, homeowners’ association fees, maintenance, and closing costs. Too many buyers — both fir st- 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 a ff ordable to you at fir st glance, but there are always “hidden” expenses involved, which, if you aren’t prepared for them, could lead you int o fin ancial 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 a ff ordable for you. One tip is to make a detailed examination of the housing market to fig ure out your price range, as well as determine any issues you might have in meeting your basic needs. Do research on items like school districts, crime stats, impending construction, or anything that could increase or decrease the value of a home. Step 2: Get Pre-Approved for a Loan Th e fir st step mentions visiting your bank to see how much you can a ff ord for a new home. You’ll also need pre-approval for a loan, whether it’s from your own bank, a diff erent bank (perhaps one that specializes in mortgages or is o ff ering a great interest rate), or another mortgage-lending company. At any rate, the majority of home buyers must contact lenders for mortgage loans because the full cost of a home is generally not within the purview of the typical buyer’s assets. Be careful here. Some banks are willing to lend larger loans than they know are reasonable, creating fin ancial issues for buyers down the road. Even if you know your budget, and you know 76
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