How Much home can you afford

How much home can you afford?

Businessman's hands with calculator and cost at the office and F

Businessman's hands with calculator and cost at the office and FPerhaps one of the biggest downfalls associated with being an adult is the fact that as an adult, we must be responsible for our finances. No more pocket money or asking the parents for a few funds to get you through the weekend – this is the real deal. It doesn’t have to be a stressful time however, whether you are a millennial or make up the “baby boomer” generation, however.

Pushing through the financial force field can be difficult if you don’t know much about financing for home buying. On that note, let’s discover more about how a mortgage approval could steer you in the right direction for real estate success.

Financial Factors to Consider

Before you can start searching for the perfect home, the financial aspect must be put in the spotlight. Sit down (preferably with a financial advisor or lending expert) to figure out how your financial situation is looking. Take the following financial factors into account to ease the house-hunting process:

Down Payment – This is the initial payment you will put down on your property. It will depend on your credit score and ability to make regular payments. Down payments for any loan are contingent upon personal applicants qualifications.

Monthly Expenses - Do not start looking at properties until you know precisely how much money is outgoing every month. Monthly expenses include car payments, credit card payments, and alimony.

Flexible or Fixed Loans? – This is a tricky one. If you want to start off with minimal expenditure, but risk paying a higher interest rate in future, go flexible. Fixed loans are more secure, in the sense that the monthly interest rate does not change.

Reasons to Consider Financing for Home Buying

While some people are in a position to afford the cost of buying a home outright or even affording a high interest rate, others are unfortunately not. This is particularly true for millennials aged around 30. With poorer credit scores and less financing experience, securing a mortgage can be tough. Financing for home buying is beneficial, because it means you have control over your cash for the mortgage lifetime. It also makes becoming a homebuyer possible.

Finding the Best Rates in 2017

Interest rates are changing all of the time and if you are to find the best rates before someone else beats you to it, or before rate fluctuation occurs, there are a few things you need to do. Aside from shining up that unattractive credit score and thinking about how long you intend on living in/working in the property, you can do more to find the best mortgage rates in 2017. First things first, use the Internet to research mortgage rate comparisons on a daily basis or at the very least, a few times per week. This will keep you in the loop about what’s a good deal and what’s not. Your knowledge on the current rate climate will help you to determine whether or not now is the time to act.

Tips for Securing a Mortgage

Keep in mind that certain lifestyle factors will have an impact on mortgage interest rates, not to mention your chance to secure a financing deal at all. Speaking with a financial advisor will relieve you of any concerns or quandaries that might be boggling your brain ahead of purchasing a home. Consider all of your options and do not overload yourself financially.

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How Much Home Can You Afford?

Paramount Equity® - affording your home

Affording Homes- Paramount Equity®It is common for those who are interested in buying a new home to look for the nicest, largest home they can afford. Nobody wants to buy a home that is too expensive or burdensome on their finances. However, you may have no plans to move in the next few years, and you want to ensure that your home provides you and your family with plenty of space, amenities, and décor to make your time there enjoyable. You can answer the question of how much home can you afford by reviewing a few key factors.

Your Down Payment

It is wise to talk to a mortgage company fairly soon in your quest to buy a home. The days of putting zero percent down on a home are largely gone, and many mortgage lenders will require you to put down a  decent amount of money when buying a home:10 to 20 percent down is a common (more…)

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How Much Home Can You Afford?

paramount-equity-money-on-trees

How Much Home can you AffordWhen you are ready to get involved in the real estate market, figuring out how much you can afford is one of the most important parts of the process. Many people go into the process of buying a house with unrealistic expectations. They think that they can buy a mansion on a minimum wage salary, and end up disappointed. Other people end up getting a house that is more than they can afford and it cripples them financially. How much home can you afford? There are a few different ways to find out.

Get Pre-Qualified

One of the best things that you can do in this situation is get pre-qualified with a mortgage lender. Almost every mortgage lender offers this type of service for customers. To get pre-qualified, you will simply need to answer some general questions for a loan officer at the mortgage lender. (more…)

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