All Things Finance First

When buying or selling a home, all things associated with the finances should take front row. You may have heard it before and I highly recommend it myself – Getting pre-qualified for a mortgage loan is very critical in getting this potential decision underway. A buyer who knows what they can borrow can prevent any unnecessary stress or let downs throughout the home buying process. As you are browsing or having an agent browse properties for you – the worst thing a buyer can do is find what feels like the perfect home, and then to be let down when the lender says it is out of reach. Beyond knowing the specific amount a buyer may be able to borrow, it is also important to know just how much you want to spend each month on a mortgage payment. Buyers in many cases are pre-approved and can actually buy a much more expensive home than they may want to budget for each month. Coming up to a desirable monthly payment is an easy calculation that can be done with the buyers lender. This calculation takes into account the principal and the interest payment on the mortgage each month, and also adds into that the cost of potential home owner’s insurance and property taxes as well. These numbers will not be exact until a specific property is determined but can be calculated fairly close. Remember, home ownership is a very rewarding opportunity and having the financial side of the equation in line from day one helps assure there will be many years of enjoyment and memories to be made in your new home!