What Type of New Home Are You Qualified to Buy?

What Type of New Home Are You Qualified to Buy?

When you think about looking for a new home, one of the first questions that probably comes to mind is: “What type of property can I afford?” That’s an important question because your price range is a major determining factor in the types and sizes of homes you should be viewing.

You don’t want to waste time looking at properties that are beyond your price range. At the same time, you don’t want to purchase a less-than-ideal home, only to realize later on that you could have afforded more.

So how do you determine what type of new home you are qualified to purchase?

The first step is to find out what your current property would likely sell for in today’s market. I make that calculation for clients all the time. It involves reviewing what homes similar to yours have sold for recently, as well as other data — such as special features your home may have that are likely to boost the selling price.

Once you know the current market value of your home, subtract any outstanding mortgages and estimated selling expenses, and you’ll end up with an amount that can be applied to the purchase of your next home. (You may also have other funds you want to use.)

The next step is to talk to a lender or mortgage broker to see how much of a new mortgage you qualify for. (Call me if you need a recommendation.) It’s important to get a Pre-Qualification or Pre-Approval. That makes the offer you make on a new home more credible.

If you want to find out the types and sizes of homes you can get into, give me a call. I’d be happy to show you the possibilities!

Related posts

Four Things You Should Know About Staging

You've probably heard about "home staging". As the name implies, it's all about arranging each room...

Continue reading
by Stjepan Rasic

Beware of Over-Downsizing or Over-Upsizing

Buying a new pair of shoes is relatively easy. Once you find the style you like, all you need to do...

Continue reading
by Stjepan Rasic

Creating a Practical Home Office

Is your home office the dining room table? Is it anywhere you can sit down undisturbed with your...

Continue reading
by Stjepan Rasic