Finding the right home is about getting the right balance between features and location and at a price one can afford. Of all the factors that go into choosing a home cost is the most important consideration. Here is some advice on how to calculate a home buying budget.
LEARN ABOUT YOUR OPTIONS: When house hunting you look for places that suit your needs and lifestyle. Do the same with your mortgage. Know the difference between fixed and variable rate mortgages and decide what amortization period best suits your situation. Payment flexibility is also important when deciding on a mortgage, to know what you can prepay, as well as options to pay less at a later date if something unexpected comes up.
CALCULTAE YOUR MORTGAGE NUMBERS: Run the numbers and settle on a price range you can afford. Most financial institutions offer a convenient online mortgage calculator, which factors in your income, downpayment, loan payments and compares different options and payment plans. Understanding what you can afford lets you narrow the search and shop with confidence, knowing the houses you view will fit within your budget.
GET PRE-APPROVED: The home buying process can happen very quickly, so be prepared. Getting pre-approved for a mortgage puts you in a good position to make an offer when you find that perfect home. There's usually no cost or obligation, and it's a good opportunity to come in to talk to a mortgage expert to clarify any questions.