On my drive to work today, I heard a disturbing radio commercial. The commercial was from a local bank stating they give free pre-approvals for home purchase mortgages as well as determine how many homes you can afford.
No bank can determine how much of a mortgage payment YOU can afford. A bank can determine if you make enough to qualify but this is an entirely different thing. For example, if you apply for a mortgage loan creating a payment of $2,000 with an income of $3,000, the bank will deny your request since your income is too low.
Be a savvy consumer when buying a home. Don’t rush into anything until you sit down and figure out a budget. When creating a budget, keep in mind the additional cost of utilities, real estate taxes, insurance, and home maintenance. By determining a budget upfront, you determine what you can and cannot afford. By doing this in advance, you take out the risk of making an emotional decision by entering into a home contract you really can’t afford. Once you determine how much you can afford, you can work with a Real Estate Agent who will only show you homes that fit within your budget.