While searching for that perfect house it’s very easy to get distracted and start wondering around looking at the beautiful pictures of houses that are listed way above your budget. That doesn’t change with buyer's higher qualifications. It's human nature - the more we can afford the more we’ll be looking for to have.
Temptation is strong, but you should be realistic. Don’t guess or wonder how much you can spend on your house. Unless you are buying your next Real Estate with CASH - Contact your bank or lending institution to determine how much you’ll be qualifying to borrow. Based on the qualification from the lender or the sum of cash you have in your account you should decide ahead of time what is the price you are comfortable to pay. It will be your decision at the end.
Not really sure where to start? We suggest you to speak with one of our associates about your search criteria. We’ll be able to help you understand how much money you would need to buy your dream house in certain location. Unfortunately your budget will determine where you’ll be able to buy or show what kind of a house you could afford in that specific Local Real Estate Market. The more flexible you are the better chances you’ll have to find the place you are looking for.
Make sure you understand how much per month you’ll have to pay for your mortgage and how much you will have to pay for the closing costs. Find out if the real estate taxes and mortgage insurance is included in your monthly payments. On top of that you might want to reserve some money for the repairs and upgrades. Monthly maintenance, HOA fees, electric, oil, gas, water, etc, can easily add few hundred dollars to your expenses. If you are not handy or don’t like to do any of the work around the house you might want to consider some of the services that are available for a fee (such as landscaping, painting, cleaning, fixing, etc.).
Having your recent pre-qualification letter on hand is crucial in today’s market. There is a lot of buyers who are, just like you, looking for that perfect house to buy. By having the paperwork ready you might be gaining 1-3 days in advantage to make your offer and to buy that house. If you decide to skip the important step of pre-qualification you might be exposing yourself in to a bidding war or loosing the house you like over to someone who had it done already. So, why wouldn’t you like to BE READY ?
Bottom Line
It doesn’t cost you anything and it has to be done anyway if you are serious about that house. Speaking with experienced Realtor will help you understand what you can expect and look for in the current Local Real Estate Market.