Hi Debi,
We are just starting to look for a new home but we are not sure how much we can afford. We don't know what the up front costs are or what a payment will be. Can you guide us in the right direction? Thank you!
Searching Suzanne
Dear Search,
This is a really good question and you are definitely ahead of the game to start your home searching process here.
One of the first thing you should do is take a look at your savings and figure out how much you have for a down payment. Right now the minimum down payment is 3.5% for an FHA loan. Of course there are some other options for down payments. See this article about coming up with a down payment.
The next step will be to find a really good loan officer. Choosing your loan officer is just as important as choosing your Realtor. You should ask friends, family and your Realtor for referrals. Also, here is an article on how to choose a loan officer.
Your loan officer will be an invaluable resource throughout your home buying process. A good loan officer will be able to explain what type of loan program will fit your needs, how much of a down payment you will need, estimate your closing costs and tell you what your payment will be.
Here are some links to articles on home buying costs and affordability.
Can you afford to buy?
Mortgage Pre-Approval
Basic Mortgage Questions
Good luck in the process and remember the great saying by Alexander Graham Bell- "Before anything else, preparation is the key to success"
-Debi
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