How much home you can afford will generally depend on how large of a down payment you can put down on a home and how much money you can afford to spend on a mortgage payment each month.
Most lendors will prefer to have you put a down payment of at least 20% of the value of your new home. If you decide on this large of an initial down payment, you will generally find that lendors will give lower interest rates on your mortgage and also not require you to purchase Private Mortgage Insurance (PMI) for your new home.
The amount of money you can afford for your mortgage payments should not exceed 28% of your gross monthly income. Your lendor and I will assist you in determining the amount of money you should borrow and how much you can afford to pay each month for your new home.
Be sure to take into consideration that buying and maintaining a new home will cost more than you expect. A great strategy for purchasing a new home is to set aside some cash for home repairs and furnishings.
As your Realtor, I will work with you carefully to determine what financial arrangements will work best for you...
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