Knowing what you can afford is crucial when looking for a new home and estimating your buying power. Of course, there are many other factors to consider. However, understanding your price range is essential to help you avoid experiencing the letdown of getting your heart set on a house that is too expensive to live comfortably within your budget.
Knowing your price range also narrows the possibilities for your consideration. It saves time, allowing you to target the right property and make wisely informed decisions about the new home you buy that you’ll be happy with for years.
If you’re budgeting for a new home and have been wondering where you really stand, read on as we explore how to determine how much house you can afford in Harford County.
Income
Your total compensation before taxes or deductions, known as your gross income, is typically used for lenders to determine their approval of the mortgage amount, which tells you how much house you can afford in Harford County. At Jedd Cheshier and the We Sell Harford Homes Team with Taylor Properties, our real estate agents can help you understand how to calculate your debt-to-income ratio and create a working budget to help you buy your new home.
Debt
Another factor that impacts a lender’s determination on how much house you can afford in Harford County is any existing debt payments. To help you buy your new home, the real estate agents at Jedd Cheshier and the We Sell Harford Homes Team with Taylor Properties will help you understand what lenders look for when reviewing your debt and some steps you can take to lower your debt-to-income ratio.
Monthly Expenses
Your monthly expenses also determine how much house you can afford in Harford County.
At Jedd Cheshier and the We Sell Harford Homes Team with Taylor Properties, our real estate agents suggest buyers follow the 28% rule to help you buy their new home, looking for properties that keep their mortgage payments at or below 28% of their gross monthly earnings.
Credit History
Your credit history influences your ability to attain credit, which lenders use to determine how much house you can afford in Harford County and the interest rate you will pay on the mortgage.
At Jedd Cheshier and the We Sell Harford Homes Team with Taylor Properties, our real estate agents know that understanding what lenders look for in your credit history will help you buy your new home and avoid blunders that could cost you more in interest or even a denial.
Pre-Approval Process
One of the best ways to help you buy your new home is to get pre-approved for a loan to determine how much house you can purchase in Harford County. At Jedd Cheshier and the We Sell Harford Homes Team with Taylor Properties, our real estate agents can help you understand the factors influencing your readiness to purchase.
Experienced agents at We Sell Harford Homes know all the steps new home buyers should take to determine how much house they can afford in Harford County. In addition, we can help you understand a great deal about costs new home buyers may face after the purchase. Also, the highly-seasoned real estate agents at We Sell Harford Homes can help you understand the market trends affecting interest rates and how loan length can affect affordability. And we also cover other factors with new home buyers in Harford County, such as the annual property taxes from prior years and what you can expect to pay in homeowner’s insurance, maintenance, and other incidentals. Don’t forget to ask about our current inventory of the best homes available in Harford County. From understanding how to budget for your new home to everything that influences your overall cost, you can rely on the pros at We Sell Harford Homes to help you find a deal you will feel great about and a home that perfectly fits you and your budget. Contact Jedd Cheshier and the We Sell Harford Homes Team with Taylor Properties at 443-616-5486.