Think Affordability, Not Price

What is the first thing people think about when buying a home?

Size? Style? Neighborhood? Nope.

Here’s the typical conversation: Me, “What home can you afford to buy?” Buyer, “Around $600, 000.” Me, “Can you afford the payments on a $600,000 home?” Buyer, “Ugh, I’m not sure.”

Most buyers think about the PRICE of the home first, second, and last!

Anonymous

Start thinking about affordability first, not price. The price of any home is irrelevant until you know what you can AFFORD.

Affordability is based on the monthly mortgage payment you can safely pay, and still have money for food, gas, heat, and Netflix.

How do I find out what I can afford?

That’s where a quality lender is so important. After providing a few basic documents, a lender can determine how much you can safely afford to pay per month. And that number will determine how much you can borrow, and ultimately the price of the home you can search for within your budget.

It doesn’t make sense to look at homes that are listed for $800,000, when you can only afford $2000 a month.

Here’s What I Suggest:

Before you start scanning Zillow and RedFin for that perfect home, find a mortgage broker you like and feel comfortable working with. He or she will educate you about the lending process, and find out what you can reasonably afford to buy. And then, they will help you determine what type of loan will work for your goal of homeownership.

If you need referrals for Mortgage Brokers, I have information on several quality lenders who I have vetted and trust. I don’t receive a kickback or anything. I know these people are customer oriented, provide timely communication, and are always looking to help buyers choose the best loan possible, based on what they can afford in a monthly payment. I don’t recommend internet only lenders.

Then, and only then, can you start searching the Web for homes. 🙂

If you are interested in reading my New Home Buyers packet of information, please click here.

My next post for new buyers will be