The Home Purchase Process - Step 2

Step 2: Figuring Out What You Can Afford

Now that you know what you want, it's time to see what you can afford. You can start by crunching the numbers yourself using our home mortgage calculator.

When you're ready to move to the next step, you can get pre-approved for a mortgage. This process can often be performed in under an hour and it accomplishes two important goals. First, it will tell you how much house you can afford and what your monthly payments would be. Second, it tells the seller that you can afford to buy their home. By definition, a pre-approved buyer has an approved mortgage subject to an appraisal of the property. Many times a buyer can use this pre-approved status as leverage during the negotiation process.

Start by creating a prioritized list of features you want in your next home and the reasons why. Use it as your search guide, but remember that depending on your funding, you will probably need to make some compromises. In addition, talk or email me about where you want to live and your homes requirements. Location is a huge part of any move. RE/MAX professionals are trained to help their clients narrow down their choices by sharing market trends and local information like neighborhood statistics and community links.

>next step

Step 1: Defining What You Want
Step 2: Figuring Out What You Can Afford
Step 3: Shopping For Homes
Step 4: Making An Offer
Step 5: Inspection & Insurance
Step 6: The Final Closing