Preparing your finances

Preparing your finances In order to buy a home is the first steps in the Home buying Process. Determine how large a mortgage you can qualify for with your current income and savings. Also explore different loans options and decide what’s best for you. Generally, you can afford a home equal in value to between two and three times your gross income. Decide if you have enough money in savings to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2% and 7% of the home price. It is also wise to do research to determine if you qualify for any special mortgage or downpayment-assistance programs. These programs can help you with the initial cost of buying a home and can help you determine what you can afford.

It is your responsibility to determine the maximum amount of mortgage debt that is right for you in your situation. You must communicate this information to your mortgage lender, and be sure to work only with a professionals who respect your limits and goals. Your finances must be considered in upfront cost as well as the monthly expenditures for living in a home.


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