Buying a home is an exciting life event, but it can empty your wallet if you’re not careful. Continue reading to learn four tips that will help you make sound financial decisions when purchasing your new home!
Determine how much you can afford. Traditionally, home buyers are recommended to look for a home that costs no more than three to five times their annual income. Be sure to consider the expenses for a down-payment, home inspection, and other closing costs. You should also take a look at your current expenses, such as cable, internet, electric and other utilities. Determine how much room you have left in your monthly budget, and consider how a mortgage payment would affect that.
Get prequalified. Before you begin looking at homes, you’ll need to know how much you can actually spend. The best way to do that is to get prequalified for a mortgage! In the month of April, SeaComm will cover $475 of your closing costs, when you prequalify for a mortgage! To learn more or to get started on prequalifying, call us at 800-764-0566 or visit your nearest SeaComm branch!
Shop around. Once you’ve determined your price range, you can start touring homes! It will be helpful to take plenty of notes on the homes you visit, as well as pictures and video to help make comparisons. You should also research nearby schools, safety and crime statistics, the nearest amenities, and traffic/noise levels.
Stick to your budget. Look at properties that cost less than the amount you were approved for. Although you can technically afford your preapproval amount, it’s the maximum, and doesn’t include other monthly expenses that arise during home-ownership. House shopping with a fixed budget in mind will also help when it comes time to make an offer!