What Type of New Home Are You Qualified to Buy?

When you think about looking for a new home, one of the first questions that

probably comes to mind is: "What type of property can I afford?" That's an

important question because your price range is a major determining factor in

the types and sizes of homes you should be viewing.

You don't want to waste time looking at properties that are beyond your

price range. At the same time, you don't want to purchase a less-than-ideal

home, only to realize later on that you could have afforded more.

So how do you determine what type of new home you are qualified to

purchase?

The first step is to find out what your current property would likely sell for in

today's market. We make that calculation for clients all the time. It involves

reviewing what homes similar to yours have sold for recently, as well as

other data — such as special features your home may have that are likely to

boost the selling price.

Once you know the current market value of your home, subtract any

outstanding mortgages and estimated selling expenses, and you’ll end up

with an amount that can be applied to the purchase of your next home. (You

may also have other funds you want to use.)

The next step is to talk to a lender or mortgage broker to see how much of a

new mortgage you qualify for. (Call us if you need a recommendation.) It's

important to get a Pre-Qualification or Pre-Approval. That makes the offer

you make on a new home more credible.

If you want to find out the types and sizes of homes you can get into, give

The Jill Ritchie Team a call. We would be happy to show you the possibilities!

Jill Ritchie