As you enter the world of real estate, funding for your next home purchase stands on the forefront of the homebuying process. Understanding what you can afford may help you in starting your journey to find your next abode.
To figure out your finances to determine how much home you can afford, consider these factors:
If you’d like to use a system to manage your finances, consider utilizing the 28/36 rule. With this method, you dedicate no more than 28 percent of your gross monthly income to household expenses such as utilities and mortgage payments. Your debt shouldn’t take over 36 percent of your gross income.
Using this system helps you manage debts and financial duties, and demonstrates to mortgage lenders you can afford a monthly mortgage payment.
Before starting the home buying journey, it’s ideal to consider your overall standing to make sure you’re ready to purchase a home.
Consider your credit score - a higher credit score may spell approval from more lenders and lower interest rates. Do you have adequate cash reserved to afford a down payment, closing costs and other fees associated with buying a home? By answering these questions you’ll get a better idea if homeownership is feasible in the near future.
Purchasing a home takes effort and much consideration, so take your time during the process and figure out your finances to jumpstart your journey.
For over 10 years, I have been following my passion of helping people find their dream homes and sell them when the time is right. First time home buyers, growing families, empty nesters looking to downsize. I guide my clients every step of the way, from initial consultation through final closing. By bringing an experienced eye and a fresh approach to every situation, I work diligently with each client to smooth the process and make it as stress-free as possible.
Fair representation, respect and integrity. Clear communication and detailed coordination. A commitment to putting my clients' needs first. These are the practices and values my clients expect and enjoy.
I also work with a wide network of trusted experts in financing, legal assistance, home inspections, evaluation and interior design. Everyone has the same high expectation of providing the utmost service through close communication and coordination to get our client to the end goal of selling or moving into their dream home!
