Financing is the KEY Step in Buying a Home.

The LC Real Estate Blog on January 4, 2012, began the discussion of Home Financing with the topic of “Determining What Price Home You Can Afford To Buy.”

Whether this is the first home you are buying, or it is your 5th, you need to consider this topic first.

In order to supplement that very important part of the home buying process, I want to provide you with additional information.I recommend strongly knowing whether home ownership is right for your current personal and financial situation.

Have you considered the Pros vs. the Cons of Homeownership?

Is it better for YOU to Rent or Buy? Use the Calculator we provide to take into consideration all the financial implications involved in this decision.

Then you need to make the most important decision: Can you afford to be a Homeowner?

If being a Home Owner is right for you then you should proceed to the first step in the Financing Process:

Determine What Price Home Can You Afford to Buy?

Knowing what you can afford will save you a lot of time and frustration because you can limit your search to homes that are appropriate for you, and then when you make an offer you know that you probably qualify to buy that home. As soon as we reach this point, The Evelyn Bruder Dream Team Buyer's Agent will assist you in setting up meeting with lenders, in person or online so you know what a lender considers "the amount that you are qualified to borrow," This process pof getting Pre- Qualified does not obligate you to any particular lender, but it will allow you to determine:

• What price home you can you afford.
• How much of a Mortgage you will qualify for.
  
• The maximum price home you can buy.
  
• What  your Monthly Payment Be?

The main factors that determine the amout of loan you qualify for are your credit score, current salary, employment history, and current debt.

This "Affordability Calculator," is similar to what is used by lenders. Using this calculator, which takes all of the above factors into consideration, you can get an idea of what price home you are qualified to buy even before visiting Lenders. Once you visit a lender, (you are not obligated to use that lender for you home loan)  you will get "Pre-Qualification Letter" stating that you should qualify to borrow and then you can begin your home search.

Your Buyer's Agent Realtor, as your trusted advisor and counselor will tell you that Lenders often qualify a homebuyer for a loan amount that exceeds what you really can afford. Together you should determine if you really should borrow that much. Willyou have extra money left, or will you be "house poor"? You and your Realtor can decide the actual amount you want to borrow. Remember that you can always borrow less than you qualify for.

 A full discussion of all the aspects of the home buying and home financing processes can be found at the Buying a Home in Las Cruces Website.