Answers to ALL the Questions You've Ever Had About Buying a Home
Choosing your next home to buy, whether it be to live in, vacation in, or invest in, is one of the most important decisions you can make. Here are some questions to consider or might be thinking of. Have more? Contact us, and let’s talk about your questions.
How Much House?
The first step toward buying a house is to sit down and plan. Before you grab the road maps and hit the streets, you need to do a little planning. We call it “pre-qualifying.” Simply, it’s determining how much house you can afford to buy. Knowing your affordable price range will bring your house-hunting into focus. Many lenders will send out all required verification and pre-approve you for a mortgage, allowing you the opportunity to negotiate as a cash buyer.
How much house you can afford to buy depends on two things: how much you can afford for the monthly housing payment and how much you can invest in the down payment. Monthly payments include principal and interest on the mortgage loan and property taxes and insurance against fire and other hazards. These four costs are often abbreviated “P.I.T.I..” For some buyers and lenders, monthly housing costs may also include homeowners association dues, condominium fees, and mortgage insurance.
How Much House Can I Afford?
So you’re looking to buy a house and aren’t sure how much house you need? Before you can think about what you need, you need to sit down and think about what you can afford.
In order to know how much house you can afford, you’ll need to consider things like cost, mortgage and interest rates, and other factors that could influence your purchase.
Here are a few of the factors you should consider when deciding how much house you can afford.
What Funds Can I Use for a Down Payment?
When it comes to buying a house, one of the first things you’ll consider is how you will make your down payment. This is typically the largest expense and the first major payment buyers will make towards their new home.
While the obvious source of money for a down payment is either your savings or proceeds from the sale of a previous home, there are some other not-so-obvious sources as well.
There are some alternative sources you can use to fund a down payment.
Can I Reduce My Down Payment?
Many people assume that you’ll have to put down a substantial down payment of 20% or more to buy a house. According to a 2022 report by the National Association of Realtors, the average repeat homebuyer in 2021 put down around 17% on their down payment, while first-time buyers only paid around 7%.
Homebuyers often ask, “Can I reduce my down payment?” The short answer is yes. But it’s important to know the ins and outs of the various resources available that can lower up-front costs. Here are a few ways to reduce your down payment.
What Other Costs Should I Consider When Buying a House?
When people consider the costs of buying a house, the first things that come to mind are expenses like the down payment and a mortgage. However, those are just the tip of the iceberg. Plenty of other costs are associated with buying a house that can catch home buyers off guard if they’re not financially prepared. Here are a few other costs, outside of the down payment and mortgage, associated with buying a house that home buyers should consider.
What Will My Closing Costs Be?
Does the house you love fit your budget? With my knowledge of the local housing market combined with our partners at Prosperity’s pre-approval process, we can help you find out just how much home you can buy. Find our what your monthly payment will be - Click Here.
Today's Mortgage Rates
Yes, your credit and income affect your mortgage rate, but there’s much more to it than that. Mortgage rates constantly fluctuate based on various factors in the market. Even if your financial status is stable, you may see very different mortgage rates throughout the year.
Extraordinary Transitions
of Long & Foster Real Estate
Ashburn, VA 20147