What do you consider when buying a house?

Buying a new home, what can I affordIn starting out the new year, many people talk about adding the purchase of a new home to their list of resolutions. However, many don’t pursue it due to some common fears. One of the biggest fears for home buyers, especially for first-timers, is that they end up buying a home more expensive than they can actually afford. We’ve all heard the stories of people losing their homes. What is sometimes comes down to, aside from the economy and other factors outside of people’s control (like losing a job), is that even though a house payment may fall within a budget, many people fail to consider everything else that comes with home ownership, like yearly home-maintenance costs, homeowners insurance, HOA fees (if applicable), and renovation costs if purchasing an older home.

So how do you know what you can afford? When considering the budget for a new home, there are six factors to consider:

  1. Gross income
  2. The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
  3. Your outstanding debts
  4. Your credit history
  5. The type of mortgage you select
  6. Current interest rates

Another very important fact to consider is just because a mortgage company may approve you for a certain loan amount, you still have to be prudent and consider what it is you can actually afford. Remember that the family still has to eat.

For more tips on what to consider when buying a home, click here to visit a page on Ideal Real Estate Group’s website for more answers to questions like:

  • How much does my real estate agent need to know?
  • When is the best time to buy?
  • What if I have a bankruptcy or foreclosure on my credit?
  • What is the standard debt-to-income ratio mortgage companies are looking for?

Sandy Luedke and Ideal Real Estate Group is here to help you find a home you can live with for a long time, that perfectly complements you, your family, and your lifestyle. Sandy will also make sure you are in-the-know on everything you need to consider when purchasing or selling a home. Call today and don’t wait another year before making your home-buying dreams come true!

Explore posts in the same categories: Buying a Home

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