Everyone knows that buying a home is a big deal – and a big chunk of change. However, some forget to think about the actual cost of owning a home. This is much different than the upfront costs of purchasing a home. So, how do you figure out what you can really afford?
To be honest, your best bet really is to sit down and chat with a mortgage banker who can assess your financial situation. You’re a unique person with unique needs and there are several factors to consider. But, if you’re interested in getting an “around there” figure, take a look at the questions below.
- How much down payment can you afford?
- How much are wanting (or qualified for) to spend on a home?
- Subtract the down payment from the home price – what’s your loan amount?
- How long are you wanting to spend paying off your mortgage?
- What are property taxes like in the neighborhood where you’re considering purchasing?
- How about private mortgage insurance?
- Will you have HOA’s?
You can see how the amount you’ll actually be paying month-to-month for your home can differ greatly from the amount of your monthly mortgage payment. That’s not to say that you can’t afford it, or that owning a home isn’t the best option. However, it’s extremely important that you find the right loan package for you so that you can afford the actual cost of owning your house.
Don’t forget to take into consideration the additional monthly costs you’ll have. You’ll still need to pay for electricity and other utilities, car payments if you have them, insurance, gas, food, clothing, etc.
Start off on the right foot as you begin your home search, and consult with a reputable and knowledgeable mortgage banker. Purchasing a home should be a financial investment, not a financial mess. The best way to know that you’re making a smart decision is to have a professional on your side through the process.
Call us today to see what your ideal home price is!
Posted May 10th, 2017