Buying a new home can be the most exciting thing you've ever done and it can also be the scariest! You need to think things through and look at the big picture. Write things down, weight out everything so that you don't become just another statistic. Here are some tips to deciding if you can afford to buy a new home.
1. How much can you afford? You should talk to a lender to help you with this question. They will talk to you about your income and your debts and together you can decide how much you can afford and how much they will lend you.
2. Get pre-approved for a loan. Once you have talked to a lender about your finances and your credit worthiness they will give you a pre-approval letter. A pre-approval letter will give you the upper hand once you find a home that you want to purchase.
3. It is a good idea to keep your monthly costs under 28% of your monthly pre-tax income. This should include what your mortgage payment will be. Don't forget to include the real estate taxes and insurance if they are not going to be included in your monthly mortgage payment.
4. If you have any long term debts like a student loan, car payments etc, then you should keep your monthly costs under 36% of your pre-tax income. This includes your monthly housing expenses.
5. Decide what type of loan you will be applying for such as Conventional, VA or FHA loan.
6. Decide what type of mortgage you will be using. Are you going to use a fixed rate mortgage or an adjustable rate mortgage (ARM)? If you decide to use an adjustable rate mortgage you must think ahead and plan for when the rates go up, because your mortgage payment will go up when the rates go up, depending on the terms of your agreement.
7. Consider homes in various price ranges.
8. Think about your future plans, perhaps you should purchase a home at the top of your price range. This will give you more time to outgrow your home and will save you money in the long run.
9. Make a budget. Write down every little expense you have - it all matters.
10. Look at your expenses. What do you really need? What can you do away with?
11. Plan for emergencies. Do you have savings? What will you do if an emergency arises? Be prepared, you don't want to lose that beautiful home you saved so long for.
12. Don't over extend yourself.
Ok, now you have thoroughly thought everything through and it's time to make a decision. Go ahead; make the decision one way or another. If you are not ready to buy, decide what it is you need to do to get to where you need to be. Either way, start talking to your realtor today!
Whatever it is start handling it now. The sooner you take care of business, the sooner you will be in your new home. If you are ready to buy don't procrastinate, because you never know when the rates will go up or when you will lose out on your perfect home.
I
specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.
I
have over 25 years experience in the real estate industry. As a Broker/Owner with Exit Realty Talbot
and Company, I bring special tools and solutions that enable me to exceed the
expectations of my clientele. If you
are considering listing your property in Loudoun County or the nearby areas,
ask me about our latest internet marketing systems. I would appreciate the opportunity to earn your business. I am experienced in listing and selling
short sales. For information on the
short sale process, please visit www.LoudounShortSaleSolutions.com.
My past awards and designations include – 2003
President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor
of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors, Top Producer awards from both the Dulles
Area Association and the Northern Virginia Association of Realtors. I am a member of the Top 5 in Real Estate
Network.
I
have lived in Loudoun County since 1979.
I am married with two grown children and two grandchildren. My son in law is my business partner in real
estate. I love to jog in the mornings
and spend time relaxing on my Trawler during the summer months.
Loudoun County and Northern Virginia Real Estate Sales and
Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers
invest in real estate in the Northern Virginia area to include Loudoun County
and surrounding areas including Fairfax, Clarke, Fauquier, Prince William Counties.
Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac
Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club,
Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round
Hill and Bluemont.
Cell 703.727.9885 Office
703.574.3800
Free
iPhone/Android Mobile App to search Northern Virginia real estate. 2 easy ways to get the App: Text “Exit9” to 87778 or enter http://87778.mobi/Exit9 into your browser.
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