How Much House?
House hunting begins at home - with a little planning, this is the first step towards buying a house.
Contact a lender, your credit union, your bank or your financial advisor and ask them to "pre-qualify" you. Simply, to be pre-qualified is determining how much house (mortgage payment) you can afford to buy. Knowing your affordable price range will bring your house-hunting journey into focus. How much house you can afford to buy depends on two things; how much you can afford for the monthly houseing payment and how much you can invest in the down payment. Monthy payments include principal and interest on the mortgage loan, property taxes and homeowners insurance. These four items are often referred to as "P.I.T.I." (Principle, Interest, Taxes, Insurance) . For some buyers monthly housing costs may also include homeowners association dues, condo fees and mortgage insurance.
When you are ready to make an offer on a home, you will want to submit a "pre approval" letter with the offer. This letter let's the seller know that you have been pre approved for a mortgage to buy their home and can afford to go to settlement on the house.
Email me for more information - cindyhartman@kw.com