On more than one occasion, i’ve had a buyer tell me they’re wanting to buy about a $250k home (which they’re fully approved for and capable of doing), but don’t want to pay more than $1300-1400 a month for it. Don’t get me wrong, it’s absolutely a possible scenario. Provided you have about $90k to put down, that is. Unlike at a car dealership where you can have all the financials done and figured out in a couple hours, the home buying financials take a little more time to process.
There’s a lot to the financials of the home buying process. The underwriters take a couple weeks to review your documents provided to verify them, insurance binders have to be sent out, and your interest rate isn’t locked in til near the end of the contract. Keep in mind your credit score also has a huge factor on your interest rate, as well as your insurance quote. We can give you a pretty close estimate as to what the monthly payment will be, but it won’t be set in stone til closer to the closing date.
So unlike at a car dealership where your sales price, interest rate, and monthly payment are knocked out right on the spot, the mortgage doesn’t work that way. It’s advisable to have a knowledge of where your mortgage should be before ever starting to look for homes to make sure it fits within your budget. Just because you’re approved for $400k doesn’t mean you have to spend more than $250k if that’s the budget you’re trying to stay within.
So if you’re in the market to buy a home, Schedule a phone call with me to get the process started! I can help you get set up with mortgage and insurance people to make sure you’re able to buy a home and have the best coverage.
You can also get a copy of my Home Buyers Handbook when buying to learn about the process!