|
|||||
Budgets and financeNaturally, one of the first considerations you must take into account is how much house you can afford. You need to know your budget, what you're spending on housing now, and how much your housing costs are likely to be in a new home, and figure out what you can afford to spend and/or borrow. HomeTeamChris.com offers you a mortgage calculator that will help you estimate what your payments will be on a given mortgage at a given interest rate, but keep in mind that your specific circumstances can vary a great deal. The conventional rule of thumb is that you should be able to buy a house that costs approximately two and a half times your annual salary. But a rule of thumb is just that, and doesn't necessarily apply in your situation. You may have a heavy debt load due to student loans, medical bills, or just poor money management. Or you may have no outstanding debts at all. Your specific situation will govern what you can afford, regardless of what the "rule of thumb" says. It's common for a home buyer to put down 20 percent of the cost of the house as a down payment. But there are many special programs available to day for first-time homebuyers that allow you to put down less. You may have to pay for PMI (private mortgage insurance) if you put down less than 10 percent. And remember, the less you put down, the higher your monthly payments will be. It's not time to actually start looking at houses with a real estate agent yet, but it's not too early to begin driving through neighborhoods you like to see what's available, and looking at ads and fliers to get an idea of the housing market in the area where you plan to purchase. You should be able to get at least a rough idea of what housing costs are in your intended purchase area.
Home buying tips |
|||||
