What Can I Afford?
Now that you have decided to start looking for a new home, one of the first questions you will have to answer is what can I afford?  This is an important question to answer before you start looking because it will determine what neighborhoods you can focus on. 

The industry suggests that you do not spend more than 50% of your income on a mortgage, car and credit card payments unless you feel your income may change in the future.  You should also be aware that if you borrow more than 80% of the money used to purchase your property, you will have to pay for mortgage insurance which takes the form of a higher interest rate. 

We suggest that you use an online mortgage calculator or that you meet with a lender or mortgage broker before you shop for a new home.  A mortgage broker or lender can provide you with a pre-approval letter which will tell you and your agent the price range you need to focus on.  You can also use this pre-approval letter when submitting your offer to assure the seller you have been approved and can afford to pay for the home you are bidding on. 

When meeting with a mortgage broker and/or lender there are some significant documents you will need to take with you.

• Three months of bank statements
• Pay stubs for 2 months
• Two years of W2s or a full tax return
• Any loan documents for your current home, if applicable
• A credit report

Viewing Properties
Once you know what your price range is, you can now focus your attention on the homes you want to visit.  You should view several homes in different neighborhoods to give you an idea of what is on the market and to get a sense of what you like.

You can view homes on your own time during an open house or you can search the internet to find a home you would like to visit.  Make your own personal list of homes you would like to see and then contact our office to discuss your ideas with an agent.  Your agent can also help you find other homes in your price range that you may be interested in seeing. 

If you decide to visit homes on your own, there are certain guidelines and tips to help you be a knowledgeable home buyer.

• Bring a notebook with you to take notes. Write down things you like about the property and things you do not like. You may also want to write down to questions to ask your agent about later.
• Remember to state that you are already represented by an agent.
• Pay close attention to detail and specifically to the things that are most important to you and your family.
• Look closely around the neighborhood to see if it is a busy street with a lot of cars or outside noise.  If you can, talk to neighbors and ask about the neighborhood.