Have you been thinking about buying a new home? If so, there are many considerations to make before buying real estate, but I’d like to talk about the financial side of it. Finding out how much of a mortgage you can qualify for and how much you can realistically afford should be a couple of the first things to consider. Let’s dive into those questions.
Finding out how many homes you can afford should be #1 on your list before you even start thinking about seriously looking to find your first home. You don’t want to put yourself in a position where you start looking, find a home you fall in love with and then find out you don’t qualify for enough to afford the home. That puts you in a negative state of mind from the start and leaves you with a bad taste in your mouth. So, how do you find out what that magic dollar amount is you qualify for so you can get started on your search?
Contact lenders in the Jefferson City and Holts Summit area. Shop for the best rates. You will need to provide your lender with a snapshot of your finances. They will determine how much money they are willing to lend you based on the information you have provided. Now you have a price in mind your lender is okay with lending you. But, should you buy a home for the maximum amount you just qualified for?
Just because you qualified for a certain amount, doesn’t always mean you can afford a monthly mortgage payment for the absolute max. You now have to ask yourself – what can I really afford? You want to have some wiggle room at the end of each month. That might mean purchasing a home for less than what your lender said is okay. It won’t be nice having your first home if six months in you’re struggling to make payments. There is nothing wrong with buying a home for less than you can afford.
In the end, you have to decide what’s best for you, but these are just a couple of financial considerations you should have before buying your first home. Shopping for your first home can be fun, and it can be even more fun by considering these issues beforehand!