Marketplace Home Mortgage

Monday, April 7, 2014

The Road to Home Ownership - How Much Can I Afford?

Congrats! You are now on Step #4 on The Road to Home Ownership! It may seem like a long and sometimes hard road, but keep up the good work and continue to stay on the straight and narrow and you will be more than satisfied with the end result – your very own home! And not just a home that you love both inside and out, but one that you can afford and will hopefully not bring you any undesired financial stress. That is why this step, Step #4 - Estimating How Much You Can Afford, is such an important one!

Don’t make the mistake of buying a house that is more expensive than you can afford. If you make this mistake you will surely find yourself in a bad situation, one that will lead not only to financial stress but stress with your spouse, stress at work, etc.

But don’t let that scare you! Just make sure you factor in the cost of a few other things and you will have no need to worry! Because the truth of the matter is that the true cost of a house is not just the mortgage payment it also includes homeowners insurance, utilities, property taxes, maintenance costs, and HOA dues if applicable.

There are some great calculators out there on the web that might be able to help you figure out what EXACTLY you can afford when it is all said and done. These calculators also include your monthly debts that you have to pay on top of your new mortgage payment – such as minimum monthly required car payments, credit card payments, student loans, etc.

In the end, make sure you are being smart and thoroughly going over your finances and monthly payments so that you don’t find yourself in hot water with your new home.

After this, you only have one more step, Step #5 – Get Mortgage Loan Approval, and then you can begin the "fun" part! The part where you find an amazing, fun and knowledgeable Real Estate Agent that will take care of your needs and find you the perfect house for you and your family without too much hassle.


Make sure you check back next time to learn more about getting a mortgage loan approval and finding the right mortgage lender!

   

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