When determining how much home you can afford, there are a couple key steps you must take.
How can you find out how much home you can afford as a homebuyer?
The first and most important thing I advise all of my clients to do when they’re trying to determine how much home they can afford is to meet with a lender—preferably a lender who’s recommended by your Realtor®. There are a couple reasons why.
The first is the relationships we have with those lenders. We only work with the ones we feel will do the best job for our clients. We provide a lot of clients for them, so they’ll give you the best rate possible because they don’t want to jeopardize that relationship.
Meet with a lender who was recommended to you by your Realtor®.
Secondly, if things go sideways or some kind of issue arises, our leverage and personal relationship with that lender ensures that they’ll always be there to answer our calls and help us resolve something. Doing the same thing with a lender you bring to us whom we’ve never met before is much more difficult.
When we’re coming up with a number, it’s not just about what you can qualify for. We also like to educate our clients and get a sense of what their long-term goals are. We want to make sure we’re setting you up to reach those goals instead of just maximizing what we can afford today.
Lastly, get on the same page with your spouse so you’re both comfortable with the size of the purchase you’re considering.
We work with some great lenders that we’d be happy to introduce you to, so if you’d like a referral or you have any more questions about determining how much you can afford, don’t hesitate to reach out to us. We look forward to speaking with you!