How Much House Can I Afford?
One of the first steps when you are thinking of buying a home is determining your budget. It’s a big let down when you look at houses in a price range way over your budget. It is generally recommended that you look at houses within your price range so that your eyes aren’t bigger than your wallet. One way to do this, is to let your agent connect you to a trusted lender. Most agents have relationships with lenders they rely on. But we get it…you may not be ready to give over W2s and have your credit run. Especially if you are just starting to look, you may just want some basic guidelines to figure out how much house you can afford.
Here are the main factors:
1. Income. While this may be obvious, your income will have a big impact on what you have the ability to purchase. One thing to consider is whether you are an employee, contract worker, or self-employed. Lenders will...
The Rent VS Purchase Decision
If you are a renter, you may have often wondered, should I stay put or jump into purchasing my own home? Which is better? Well, it depends. Which costs more? Well, it depends. There are a lot of factors to consider and renting works for people in many situations. Likewise, purchasing a home can be a great decision and investment for many. Keep reading for a quick breakdown of the important factors:
When renting, your costs are generally fixed for the term of the lease. In some cases, utilities (or a portion of them) are part of the fixed costs. Often, a large portion of rent and a security deposit is required up front. In most places, when a lease ends, the landlord is free to increase rent, and, at any
time, they can sell your home!
As a homeowner, the landlord (you) cannot sell without your permission. Usually, if you require financing, your payment...
Rising Home Prices Create Affordability Issues for Homebuyers
Published: February 11, 2014
Tight inventory pushed home prices up in most U.S. metro areas. That’s good news for homesellers, but bad news for buyers struggling to afford a home.
Home prices rose strongly in the lion’s share of U.S. metro areas in the fourth quarter of 2013, data from the NATIONAL ASSOCIATION OF REALTORS® shows. As homes became more expensive, however, they became less affordable, particularly for Western homebuyers.
The national median existing single-family home price was $196,900 in the fourth quarter, up 10.1% from $178,900 in the fourth quarter of 2012. The median price is where half of...