The first question you're bound to ask is, "How much home can I afford?" That depends on a number of factors:
- Your selected location. Are you set on a specific area? Downtown? The suburbs? A rural setting?
- Your preferred type of home. Detached? Duplex? High-rise? Townhouse? New or Resale?
- Your income. It's not just the mortgage you have to take into account. There are property taxes, utilities and, in some cases, condo or homeowners association fees. As a general rule of thumb, your monthly home-carrying cost should not exceed 30-35% of your income.
- Market conditions. Is it a buyer's, seller's or balanced market?
There are always a few additional costs to keep in mind - like lawn care, remodeling and redecorating.
It's a good idea to work out exactly what you want and what you can afford before you begin the search.
Be specific. Then stick to looking at homes in your price range. The more you've thought it out, the
better your RE/MAX agent can meet your needs.
One part of deciding just what you can afford can be accomplished by meeting with your bank or a
mortgage broker and negotiating a pre-approved mortgage. There are many types of mortgages and many
different terms. Research all of your options. This ensures that there are no surprises once you're
ready to make an offer.
Once you've figured out your monthly expenses and what you can afford, you can start your search.
It could be that the first home you see is the one you want; or you might look at home after home
with one of them catching your eye. But rest assured that the home you're looking for is out there,
somewhere, and when you find it, you're ready to make an offer.
Purchasing a home is easy once you put your plans together.
