See What You Can Afford
When buying a home, most people will need to acquire a mortgage loan. Your Cora Bett Thomas Realty agent will suggest a few reputable lenders who can help determine the price range for a home you can afford. The lender can also pre-qualify you for a loan amount by considering your income, bills you currently have and the amount of your down payment, which is generally 5% of the purchase price, but the more you can pay down the better. You will also want to consider the interest rate, and whether it is variable or fixed. If variable, determine when you can lock it in and if it will cost you anything to do so. If you have excellent credit, you should get the lowest rate offered. Another expense is closing costs, which include appraisals, recording fees and more, but the lender should provide a "good faith estimate" of all out-of-pocket expenses.
Once you have a price range of homes available to you, your agent will help you decide if a neighborhood fits into your budget by conducting a Comparative Market Analysis. This will give you a breakdown of different homes in different locations that have been or are currently on the market. This will help you know a home's value by comparing it to other homes in the area. Once you have determined the value of homes in an area you can determine if it meets your financial requirements.
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