Choose a Home That Suits Your Budget
Your “dream home” can become a nightmare if you end up “house poor” with most of your available cash going to pay for the mortgage.
Over extending yourself financially may eliminate some of the excitement of owning your own home. A RE/MAX metro-city professional will help you find the right property, assist you in evaluating mortgage options and can put you in touch with a mortgage specialist. Being pre-approved is an important part of looking for a home and it will ensure that you are looking in the right price range. Being pre-approved will also secure your rate for a period of time and protect you should interest rates go up.
In the meantime, set a maximum price range by establishing the amount of cash you can put towards the purchase (your down payment) and the maximum amount of loan mortgage you can comfortably afford.
The larger the down payment, the less you have to borrow, the smaller your monthly mortgage payment, the lower your cost of borrowing will be. So it makes sense to put down as much cash as you can. But remember to keep a cash reserve for unexpected expenses. You also have to budget for closing costs such as land transfer tax, legal fees and possibly mortgage fees.
Your RE/MAX metro-city sales representative will discuss these expenses with you and help to ensure you are well informed and prepared for the home buying process. Speak to your sales representative today and have the industry’s best working for you.