Contact Rain Silverhawk of Sandpoint Keller Williams Realty.

Search MLS

Categories

price

How Much Home Can You Afford?

How Much Home Can You Afford?

The single most important part of buying a house is figuring out how much you can realistically afford to pay. You’ll have to take a good look at your budget, debts, credit reports, and credit score. Once you have a good picture of your financial status, start saving as much money as you can for a down payment, closing costs and other extra expenses that come along with buying a house. Extra expenses could include paying for a home inspection (around $300 – $500 depending on where you live) or hiring a moving company after the sale is final.

Depending on the condition of your finances — if you have a lot of debt, errors on your credit report, or a low credit score — getting ready financially could take six to 12 months or more! If your credit score falls below 620, lenders may see you as a risky borrower. This might mean you can only qualify for a sub prime mortgage (one with a higher interest rate). It might be worth your time to take a year and work on building a better credit report before taking on the responsibility of a mortgage. Also, if you qualify for a lower interest rate you could save thousands of dollars over the life of the loan. Be wary of companies that offer to repair your credit for a fee.

Rain Silverhawk reviews