Home Buying What Can You Afford

Home Buying What Can You Afford

Home Buying What Can you​ Afford?
Okay, you’ve decided to​ buy a​ home and​ are trying to​ figure out what you​ can afford . ​
Before you​ go home buying, you​ need to​ carefully consider what you​ can afford as​ far as​ a​ mortgage payment . ​

Mortgage Payments
The first step you​ should take in​ determining what you​ can afford is​ to​ talk to​ a​ mortgage lender . ​
in​ fact, the best step you​ can take is​ to​ go through the loan process to​ the extent required to​ get a​ prequalification letter . ​
a​ prequalification letter tells you​ and​ a​ seller how big of​ a​ home loan the lender will give you . ​

So, once you​ have the loan in​ hand, that must be the amount you​ can afford? The answer is​ maybe or​ maybe not . ​
The prequalification letter is​ based on a​ number of​ factors such as​ your earnings and​ credit . ​
it​ is​ not based on a​ picture of​ your life, which can lead to​ problems . ​

Other Expenses
There is​ nothing worse than buying a​ home and​ straining to​ make the monthly mortgage payments . ​
This situation occurs when a​ homebuyer relies solely on the prequalification letter or​ their own wishful thinking . ​
you​ may have purchased your dream home, but don’t let the payments be a​ nightmare . ​

In determining how much you​ can afford to​ expend on a​ home purchase, you​ must consider your overall financial situation . ​
Although you​ may be in​ a​ decent financial situation at​ the moment, do you​ have future expenses that will put pressure on your finances? Such situations might include
1 . ​
Planning to​ have kids in​ the next year or​ so?
2 . ​
Are your current children going to​ college soon?
3 . ​
if​ you​ own a​ business, is​ the financial outlook stable?
4 . ​
if​ you​ work for​ a​ company, are you​ reasonably sure the company is​ headed in​ the right direction?
5 . ​
Do you​ have any concerns regarding the dreaded downsizing?
6 . ​
if​ you​ are the sole bread winner, what would happen if​ you​ were unable to​ work for​ a​ few months because of​ health issues?
These general questions are intended to​ wake you​ up to​ the possibility of​ over extending yourself on a​ mortgage . ​
Every situation is​ different, so make sure you​ take a​ careful look at​ your life to​ make sure you​ are committing to​ a​ loan you​ can afford now and​ in​ the future . ​

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