Buying a home can be a complicated task if you don’t know where to start.
This will help walk you through the basics of home buying so you get a solid understanding of what it takes to complete the purchase process.
What Can You Realistically Afford?
Before you start visiting every open house that you see and looking to seek out a designated moving company like North American Van Lines, you’ll want to get a firm grasp on how much you’re willing to spend on your future home. Furthermore, this ties in with your mortgage commitment – as well as how much the lender is willing to offer you.
Seek out a realistic budget that you can work with. Or, you can contact a financial professional and have him or her crunch some numbers for you. By doing so, you’ll have a true estimate of what you can afford and what’s way beyond your price range.
Plenty of buyers overstep their financial boundaries and find themselves in a predicament down the line. Remember to consider every factor, as a home will undoubtedly be the biggest purchase that you’ll make in your lifetime.
Once you have a good understanding of your budget, it’s time to think about the down payment that you’re going to make. Today’s home buyers are saving at least 20% (minimum) for the down payment and another 3 to 5% for closing costs – which is a whopping amount if you think about it. However, by taking this route, you’ll avoid having to purchase private mortgage insurance – we’ll talk more about insurance in a bit.