As you enter the world of real estate, funding for your next home purchase stands on the forefront of the homebuying process. Understanding what you can afford may help you in starting your journey to find your next abode.
To figure out your finances to determine how much home you can afford, consider these factors:
If you’d like to use a system to manage your finances, consider utilizing the 28/36 rule. With this method, you dedicate no more than 28 percent of your gross monthly income to household expenses such as utilities and mortgage payments. Your debt shouldn’t take over 36 percent of your gross income.
Using this system helps you manage debts and financial duties, and demonstrates to mortgage lenders you can afford a monthly mortgage payment.
Before starting the home buying journey, it’s ideal to consider your overall standing to make sure you’re ready to purchase a home.
Consider your credit score - a higher credit score may spell approval from more lenders and lower interest rates. Do you have adequate cash reserved to afford a down payment, closing costs and other fees associated with buying a home? By answering these questions you’ll get a better idea if homeownership is feasible in the near future.
Purchasing a home takes effort and much consideration, so take your time during the process and figure out your finances to jumpstart your journey.
As a native of Cape Cod, having grown up on its beaches, attended its schools and lived here all my life, I have an extreme appreciation and enthusiasm for this special part of the world. With my strong local perspective I bring extensive knowledge of the area, its values, schools and architecture. As part of a large family growing up, my well honed negotiating skills developed early! I pride myself on the values of honesty, integrity and hard work and I am committed to providing my clients and customers with extraordinary satisfaction in every transaction. As a Top Producing Cape Cod REALTOR® and Gibson SIR Brewster Office’s # 1 Agent in 2014, 2015, 2017, 2018, 2019, 2020, 2021, 2022 & 2023, I have successfully assisted Buyers and Sellers since 2006 with 273+ property sales. Take advantage of my local knowledge and experience and let me help you achieve your goals!
