Buying a home can be an enriching experience. But, it can also be frustrating if
you waste time looking at homes you can't afford. Do yourself a favor and find out
how much home you can afford before you start looking.
Three factors will determine your price range. The first is the amount of cash you
have for a down payment and closing costs. The second is the size of the mortgage
you can qualify for. The final factor is how much you want to pay.
Although some buyers can pay all cash, most must borrow a mortgage from a lender
to finance their home purchase. To qualify you for a mortgage, a lender will analyze
your financial situation, including your credit history, to make sure that you are
a good credit risk.
The easiest way to find out what size mortgage you qualify for is to talk to a lender
or mortgage broker. To find a good lender or mortgage broker, ask friends who purchased
or refinanced a home recently for recommendations. You may want to talk with several
people. There's no obligation to use the person you initially speak with.