What is your buying power?
With the latest national foreclosure crisis still looming it is imperative that a home buyer is aware of their buying power before beginning their search for a new home. Homeownership is suppose to be a major part of the American dream, but for many this has become their worst nightmare.
Let’s look at a few tips to help you determine how much of a monthly mortgage you can afford .
1.Draft a budget and don’t forget to include the things that you currently enjoy such a manicures, pedicures, movie night, make up and if you own pets you must account for them.
2 Select a local lender
3 Down payment- depending on the loan your down payment can range from zero down on a VA loan to an FHA loan that requires 3.5%
Calculate current rent (avoid payment shock) take current rental payments and multiply by 1.33 (house logic)
4 Consult a REALTOR®
5 Have fun
There will be unforeseen life occurrences, but the better prepared you are in the beginning the better equipped you will be in the end.
Remember that the housing market is ever changing and now is a great time to buy the home that was out of your reach 3 years ago.