If you’re not sure where to start, try an online mortgage calculator, which will take various factors into consideration, including your monthly income. I would also be happy to give you a preliminary estimate on what you can afford. One tip is to make a detailed examination of the housing market to figure 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
This is where I come in. Yes, you can get a loan from most financial institutions, but the majority of home buyers 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 financial issues for buyers down the road. Even if you know your budget, and you know what’s affordable for you, you could get “tricked” by a bank or lender into thinking you can afford more than you can. Know your limits. Stay disciplined so you stay on track. Let’s say you’re counting on selling your home for X amount of dollars to serve as your down payment for your dream home that’s a bit out of your financial reach, and you don’t have extra in your savings account. What are you going to do if your home doesn’t sell for the amount you expected — or worse, if your home doesn’t sell at all, languishing on the market while you’re forced to pay two mortgages and can’t make ends meet? You have to be smart about this. While the process of buying a home, whether or not it’s your first, is a major emotional financial
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