If you are buying a home in New Albany, knowing how much you can afford is key to a simpler home search. And if you are a first-time home buyer, this information is crucial to helping you experience a smooth and enjoyable home buying process.
Learning What Size Mortgage You Can Qualify For
When you talk with a mortgage lender during the preapproval process — which involves a deeper look into your financial history than a mortgage prequalification — you will will receive the amount of financing that you can qualify for. Unlike a prequalification, there is no estimation on your loan amount.
If you want to read more about why preapproval is a valuable tool to you as a home buyer, read this article on a previous blog post.
Other Financing Considerations
It is a good idea to speak with a mortgage lender to learn how much financing you can qualify for. But it’s also a good idea to understand how much you can truly afford for a mortgage. Home buyers often find that they are preapproved for more than they want to spend.
Monthly Mortgage Payments
Make a budget and find out exactly how much you can afford to make monthly for your mortgage payments, and use our helpful mortgage calculator to determine your monthly payment amounts, taking into account your interest rate, loan amount, and annual tax and insurance amounts.
The Down Payment
Depending on which type of mortgage you apply for in New Albany, you may end up having to put a 20% down payment on your home. On a home that is $500,000 that ends up being $100,000.
Other Closing Costs
In New Albany, common closing costs include the down payment, points, inspection fees, and notary fees. Read our article about the closing process to find other fees that may apply.
We Can Help You Find the Perfect Home
If you are considering buying a home in New Albany, we can help you take the step toward homeownership, including finding the best home that is within your price range and helping you decide which mortgage plan is best for you.
We are the real estate experts in New Albany. Contact us today at 614.939.1234 and let’s start working together to find your dream home.