Searching For Affordable Homes For Sale
Affordable homes vary in price according to neighborhood. In some neighborhoods, an affordable home costs $500,000 or more. In others, an affordable home is $150,000 or less. It just depends on the market in your area. Only you can determine what is affordable for you.
What is your credit score? How kind of down payment can you make? What kind of loan will you qualify for, at what interest rate? Perhaps you have a substantial down payment and have qualified for large loan at good interest rates. Be sure to factor in all of your expenses when you look at what your monthly payment is going to be. You may want to buy under what the lender qualifies you for due to other monthly expenses that you know you have.
Realize Your Credit Score Affects Affordability
Your lender will look at your credit score to determine whether to approve a loan and at what rate. Only those with the highest credit scores get the best rates and lowest fees. Talk to a real estate agent and see what they say about your credit report. They will have a good idea of the approximate amount a lender will give to a person in your situation. As you go by the pre-qualifying course of action you will get a clearer picture of the total amount that will be obtainable for you to buy a home.
Check out an On-Line Mortgage Calculator
You will find free mortgage calculators on the websites of many lenders. You can plug in different variables to find out what your monthly payments would be in various scenarios. The more details the calculator asks the closer to the real world loan it will come up with. Some of these ask for identifying information so that the lender can follow-up with you. Be careful to not truly apply on-line before you are ready. Sometimes these credit applications can show up on your credit report. You want your credit report to look as good as possible.
Look at the Bottom Line
You are the one who has to live with the bottom line. Do not let a realtor or lender talk you into taking on more than what you know you can provide. The last thing you want to do is to get in over your head.