How to Buy a Home without Breaking the Bank
Owning a home is the American dream. But the last think you want to do is stretch your budget in order to reach this dream. Doing so may in face turn your dream into a nightmare. Read below for tips on how to buy a home without breaking the bank.
- What’s your financial house look like? – What is your credit score? The first thing a lender will do is take a look at your debt-to-income ratio. Make monthly payments on time, reduce credit card debt, check your credit report and do what is needed to become a better candidate for a home loan. A lender will also want to see pay stubs, tax returns, and bank statements so make sure you have these available and ready to show.
- Get pre-approved for a loan – You can look all day at new homes in Roswell NM but not knowing what you qualify for will do you no good. Getting pre-approved for a home will reveal the price point of homes you should be looking at and help you narrow down target communities to live in.
- How much can you really afford? – A lender may qualify you for a loan of a certain amount. This does not mean you have to buy a home for that amount. Do the numbers and only a purchase a home for an amount you are comfortable with. Purchasing a home that is more expensive than what you really can afford can overextend yourself in ways that will harm you financially. A mortgage calculator is a great tool to estimate your monthly payments. Take into account monthly expenses such as car note, health insurance, and other bills to help you stay within-your-means.
- Include hidden expenses – The price of homeownership doesn’t end at purchasing the home. You’ll want to account for extra expenses such as closing costs, homeowner’s insurance, homeownership (HOA) fees, property taxes, utilities, ancillary costs (trash and water), cable and Internet, and maintenance and repair costs. These extra expenses can quickly add up and put you over budget.
- Save, save, and save some more – You should be saving for not only your down payment but also an emergency fund. You don’t know what will come up during your home buying journey. Having money outside of your down payment will hopefully help you avoid any unforeseen money issues.
Since you are in the market for a new home we suggest giving us a call at 575-404-1668. We have six beautiful new homes in Roswell NM communities for you to choose that are priced from the high-$150’s to the low-$400’s. Our communities offer a wide range of floor plans that vary in size from 1,328 to 3,380 square feet of living space and are. These floor plans have between three to six bedrooms, two to three-and-a-half bathrooms, and two to three car garages.Tags: new homes roswell nm