Buying a home can be a daunting process. It’s one of the biggest financial investments you’ll ever make and whether you’re a first time home buyer or an experienced one, you’re bound to have a few questions.
The short answer is that really depends on your income and current financial obligations. Only a lender or mortgage broker can give you an accurate estimate of what you can afford. Contacting a mortgage broker is the best place to start your home buying process. This will help you narrow your home search from the very beginning. Knowing your price range up front will help avoid disappointment and missed opportunities later.
Perhaps you think you already know what you can afford. That doesn’t mean you shouldn’t contact a mortgage broker as soon as possible.
First, you can start collecting the necessary financial documents that they will require in order to approve your mortgage once you are under contract. These requirements can vary from person to person, so it’s important to talk to your mortgage broker about what you will need to provide.
Second, most sellers will require some sort of documentation to show you are in fact financially capable of purchasing their home. Some will even require a letter from your mortgage broker to be attached to any offer you submit. Having this ready to go at a moment’s notice, will again help you save time and lessen the chance that you’ll miss out on your dream home.