Real Estate Corner

Q. What Things Should I Consider Before Making An Offer On A Home?

A. First, determine how much home you can afford. As a rule of thumb (and only a rule of thumb), you can afford to buy a home equal in price to about three times your gross annual income. More precisely, however, the price you can afford to pay for a home will depend on six factors: 1) Your income; 2) The amount of cash you have available for down payment, closing costs, and cash reserves required by the lender; 3) Your outstanding debts; 4) Your credit history; 5) The type of mortgage you select; and 6) Current interest rates.
The process of buying a home is much easier if you start out by getting pre-qualified or even pre-approved with your lender for a home loan. This amount will let you know how much home you can buy, and makes you a more credible buyer