Financing : How To Buy A Home You Can Afford

Financing a home can be a bit scary, confusing and easy to push aside but it is one of the most important steps in buying a home. It’s hard to know what a $400,000 home will cost you on a monthly basis and it changes based on numerous factors. Use our mortgage calculator to get an estimated monthly payment for the houses you are interested in. Although getting pre approved is an important step this can be a fun way to get the ball rolling and start to see what you can afford.

As you prepare for this major move you should find a lender that can give personal and professional advice that will coincide with your family’s financial plans. In today’s lending environment it’s a great advantage to have your finances together, credit pulled professionally and several loan products suggested for your consideration.

Once you have an idea of what you want and are getting the urge to see the houses in person, it’s usually time to talk to a lender. We urge our clients to do this so they are fully informed and don’t fall in love with a house they can’t afford. The lender will be able to pre approve you in about 15 minutes with just a few questions. The pre approval is critical in this fast paced market because we need to be willing and ready to make an offer when you find the right house.

Here are 5 questions to ask your lender:

  1. Tell the lender your goals and ask, What products do you have that can help me reach those goals?
  2. What’s the APR vs the Rate?
  3. How does my credit score impact pricing?
  4. What are the pros and cons of conventional and FHA loans?
  5. Where does your business come from?

As basic as this may seem, financing always seems to rear its ugly head in almost every dream home sale. Though shopping for the best rate may be your dream it is not the most important part of the deal when discussing finances. Our team knows how important this relationship is and we are happy to put you in touch with one of our preferred lenders.

Call us to find out how much home you can afford.

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