I can’t tell you how many times I have heard, “I’m ready to buy a place, where do I start?”
The first step is ALWAYS get prequalified for a loan. Always. This is your barometer for what you should be looking at – it can drive your search to or away from neighborhoods, schools, proximity to work, etc.
I mean, why look at houses that cost $100,000 more than you can comfortably afford? Of course you are going to like a house that costs $100,000 more than what you can afford, right? And then you are disappointed when you find out what you realistically can afford.
Lenders have formulas to determine what you can afford based on a lot of factors including credit score, debt-to-income ratio, salary, job stability, etc. And most of the time buyers qualify for a purchase price that is higher than what they are expecting. The most important thing to consider is what you are comfortable paying for a monthly mortgage payment.
Call us at The Peters Company to get lender recommendations and see what you can afford – we use our expertise to guide you through the process.
Written by Dore Brooks, Lead Buyer Specialist, The Peters Company