Know What You Can Afford Before Shopping For A Home
Speak with a lender and figure out your finances before home shopping
Posted on January 25, 2012 by Matt.
First-time homebuyers who are thinking about entering the San Clemente real estate marketplace are undoubtedly excited about owning their first home and have stars in their eyes about living the American Dream. However, do not be so quick to start looking at San Clemente homes or condos until you have a clear understanding of what you can afford. For many first-time buyers, a mortgage is a necessity due to a lack of funds; in this case, it is a good idea to speak with lender first before looking at homes. The last thing you want is to find the perfect home, only to hear from your lender that you cannot qualify for such a high home price. Home buying is one of the most emotional decisions you will make in your life, so speaking with a lender and getting pre-qualified for a loan will take some of the emotion out of your decision - you will know what a lender is willing to consider giving you to help with the home purchase, so you can look at homes that will fit this budget.
Likewise, sit down and really crunch the numbers for what owning a home will cost you. Don't make the mistake of simply factoring in your monthly mortgage payment; there are many additional costs associated with home ownership, including property taxes, mortgage insurance, homeowner's insurance, HOA assessments, and other expenses. This is where a good financial consultant or loan officer comes into play...they can help you break your monthly costs down so that you have a clear picture of what it will cost you to own a new home.
Preparation is key if you are thinking of purchasing a home or condo. If you would like more information on the process of purchasing San Clemente real estate, please contact us.