CAN I BUY A HOUSE?

Driving through the neighborhoods, you find yourself slowing down as you drive past each for sale sign, picturing what it might be like if you and your family were living here. The garden you would plant, the color you would paint, the possibilities are endless, but you aren’t sure you qualify to purchase. The mortgage interest rates are so low, you wonder if there is a possibility that one of them could really become your new home?

You aren’t sure if you have an acceptable credit score and what about down payment money?  You’ve heard conflicting stories about how much money you need available for closing costs; are your savings enough to cover them?  How much money do you really need?  How much house could you qualify for?  What would the monthly payments be? What other steps are involved in buying a house?

You won’t know unless you take a bold step; talk to a real estate agent and a mortgage lender! Determining the affordability of buying a home isn’t the simplest calculation, because there are a lot of variable to be considered.  A conversation with a reputable mortgage lender will answer all of your questions, including the most common:

1. How much house can you qualify for?
2. What mortgage interest rate will you be offered?
3. Will your debt to income ratio be within required guidelines?

Then there is the market itself, which may contain a few contradictions that cause more questions than it gives answers!  This is why your local marketing specialist is such a vital part of your home buying journey!  Even if your current financial picture calls for a time of preparation, it is never too early to get an expert on board to help you understand the market and the buying process.  You will be that much farther ahead when the perfect home for you is discovered.

Favorable interest rates are only one aspect of the purchase puzzle to take into consideration.  Low inventory in many areas present obstacle and being armed with expert information from a real estate agent will provide what you need to overcome those obstacles.

Sean Becketti, Freddie Mac’s chief economist, says buying is affordable for the average household, though challenges remain. “Thanks to very low mortgage rates, monthly mortgage payments are affordable for the average household despite currently high house prices,” Becketti said. “Nevertheless, hurdles to homeownership arise from the difficulty of finding a house.”

Those hurdles are where advance planning with an experienced local agent will give you an advantage in turning your home buying plan into a goal happily met as you move into your new home!