If you are considering buying a home and are like many people, affordability simply means how much you can borrow. The truth is that there is more to what you can afford than what a bank or mortgage lender is willing to give you. It will do you no good to purchase a home selling at hundreds of thousands because that is what a lender is willing to hand over when you won't be able to afford the monthly payments on top of your other bills.
Knowing What You Can Afford
It is generally recommended that your mortgage payment be no more than 28 - 31 percent of your bring-home income. Consider that you will also be paying for utilities, food, gas and other bills. A good rule of thumb is to figure out $100 worth of mortgage payment for every $10,000 borrowed. This will, of course, fluctuate depending on the interest rate and your unique financial situation, but it's a place to start.
Getting In Over Your Head
Most people know of the mortgage crisis that occurred nearly a decade ago. People across the country began losing their homes at an alarming rate. This was because they took on mortgages that they would not be able to maintain. No one wants to get stuck in that situation. If you cannot make your mortgage payments, chances are high that you could lose your house to foreclosure.
Smart Shopping
Would you love an inground pool? Do you want granite countertops and subway tiles? Do you need these things immediately? For many people, a home that needs a bit of work to make it their own can be just the thing. Don't forget that once you purchase a home, you can make it into the one of your dreams. It doesn't matter if it takes you five weeks or five years to do it.
If you are interested in learning more about the homes for sale in Jackson, reach out to our real estate agents. We are here to help you and want to make the home buying process as smooth as possible.
Knowing What You Can Afford
It is generally recommended that your mortgage payment be no more than 28 - 31 percent of your bring-home income. Consider that you will also be paying for utilities, food, gas and other bills. A good rule of thumb is to figure out $100 worth of mortgage payment for every $10,000 borrowed. This will, of course, fluctuate depending on the interest rate and your unique financial situation, but it's a place to start.
Getting In Over Your Head
Most people know of the mortgage crisis that occurred nearly a decade ago. People across the country began losing their homes at an alarming rate. This was because they took on mortgages that they would not be able to maintain. No one wants to get stuck in that situation. If you cannot make your mortgage payments, chances are high that you could lose your house to foreclosure.
Smart Shopping
Would you love an inground pool? Do you want granite countertops and subway tiles? Do you need these things immediately? For many people, a home that needs a bit of work to make it their own can be just the thing. Don't forget that once you purchase a home, you can make it into the one of your dreams. It doesn't matter if it takes you five weeks or five years to do it.
If you are interested in learning more about the homes for sale in Jackson, reach out to our real estate agents. We are here to help you and want to make the home buying process as smooth as possible.
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