Home prices around the country have been on the rise in recent months, but homeownership is still a goal that you can achieve. With the right real estate agent and a good game plan along with a down payment, you can start your search. Here are some recommendations for you to use as you look for your own home to purchase.
Look at Your Home Buying Budget
As soon as you decide that now is the time to buy a house, you should get a realistic view of how much you should and can actually spend on a home. Housing is an essential expense, and the home you buy should be something you are proud of and love, as it will provide you with a specific lifestyle and protection from the outside elements. So making sure you find a good home is just as important as staying within your spending budget.
First, you should get prequalified for a mortgage with a lender or mortgage broker, which will include submitting an application and then reviewing your credit file and income history. With this information, your mortgage broker will be able to provide you with a maximum loan amount that you are qualified for based on these criteria. But before you start to shop with this limit as your maximum, you need to make sure it fits within your household budget and does not stretch your finances beyond what you can afford with your other expenses. Look at your other debts, and make sure the new mortgage payment based on the maximum loan amount does not put you in the red each month.
The best way to do this is to use an online calculator to input details on your potential new loan to find out how much your principal and interest payment is going to be. Then, calculate a monthly tax escrow payment and find out how much your homeowner's insurance premium is going to cost you as well. Use the calculator to designate a maximum payment, then go with the actual home mortgage amount plus how much you have as your down payment, which should be your actual spending limit.
Arrange For an Inspection
Once you have found a home that is within your budget, you should do all you can to check out the home with inspections. Walking through the home, you can complete a thorough inspection to look for signs of basement moisture or a worn-out roof. Then, be sure to hire a professional home inspector to go through the home, looking for other issues that you may have missed. This will help ensure you are not stuck with any expensive damage once you move in.
For more information, contact a real estate agent to begin looking for homes for sale in your area.