Purchasing a home should be nothing less than exciting. It’s a major commitment and one of the largest transactions you will likely make in your lifetime but this shouldn’t overshadow the dream of homeownership. An easy and stress free process is an experience we’re dedicated to ensure. Being prepared by answering two questions—are you ready to buy and how much “house” can you afford—will help you make better decisions throughout the process. Take this opportunity to learn more about the home buying and mortgage experience. Below and throughout this site you will find helpful information to aide you in purchasing your new home but there is nothing quite like personal attention. If you have any questions or concerns, please don’t hesitate to pick up the phone and give us a call or send us an email.
We are here to help YOU.
Am I Really Ready to Buy?
There are many advantages to homeownership. One of the most significant: home owning allows you to build equity (ownership) by paying your mortgage on time each month. Bonus: in many cases, the monthly mortgage payments are less than the monthly rent payment.
When considering homeownership for the first time, it’s important to determine if buying makes both, financial and practical sense for you. To do so, consider the pros and cons to both renting and buying, weighing them to your personal situation. Think about location, length of time you plan on staying in the area, income and job stability, utility expenses, and home care, for a few.
How Much “House” Can I Afford?
Save time by focusing only on homes in your price range. To do so, calculate your purchasing power and determine how much you can afford to pay each month.
Some upfront costs include:
Down payment: Typically ranges from 1-30 percent of the cost of the house. The more you can put down, the greater equity you will have in your home and the lower your monthly payment will be. For down payments less than 20 percent, you may be required to pay mortgage insurance.
Closing Costs: Typically range from 2-6 percent of the loan amount depending on your area.
On-going Costs: Your housing costs can include the following:
- Monthly mortgage payment
- Homeowners insurance
- Mortgage Insurance
- If applicable – Flood Insurance
- If applicable – Property taxes
How Much Can I Get Pre-qualified For?
Before you go looking for a home, you should see if you are financially able to get a mortgage and get an estimate of what you pre-qualify for from a lender. If you are working with a real estate agent, getting pre-qualified lets them know you are a knowledgeable and serious buyer.