How Much of a New Home Can You Afford?
If you’re thinking of shopping for a new home, one of the first considerations
is price range. You want to know what you can reasonably afford.
How do you figure that out?
First of all, you need to determine the initial out-of-pocket costs you will
need to cover. There are often more costs associated with purchasing a
home than its actual price. You need to take into account such additional
expenses as moving costs, legal fees, and a home inspection, not to
mention the costs of prepping your current property for sale.
Experts say you should budget 5-10% above the purchase price for these
items. So if you can afford to spend $470K on a new home, you should be
shopping in the $425-445K range.
Another factor to consider are the potential proceeds from the sale of your
current home. Your REALTOR® can help you determine how much your
property will likely sell for in today’s market. Any existing mortgage will need
to be subtracted from that amount to determine how much cash will be left.
Of course, you should speak to a mortgage broker or lender who can
compute how much of a mortgage you qualify for. Remember, qualifying for
a big mortgage doesn’t necessarily mean you should have one. You also
need to consider your personal finances and desired lifestyle – and whether
or not having a large mortgage is a good idea for you.
Once you have gathered all of your information, you can add any potential
sale proceeds to the amount of mortgage you qualify for, add other sources
of cash available for this purpose and subtract 5-10% for initial expenses,
and you’ll have an idea of the price range you should be considering.
Finally, it’s important to take the time to decide what kind of home you want.
Do you want a large backyard with trees? A quiet, family-oriented
neighbourhood? Four bedrooms and a finished basement? Once you
decide what you want most in a new home, it becomes much easier to find
one that’s in your price range.
New property listed in Champlain Heights, Vancouver East
I have listed a new property at 3374 MARQUETTE CRES in Vancouver.
Welcome to Champlain Ridge. This newly restored 2 level townhouse, corner end unit, features 3 bedrooms & 3 bathrooms, fully renovated just over a year ago. The upper level features a large master with ensuite, and 2 more bedrooms perfect for a small family. New laminate floor and hardwood throughout. Fully renovated from top to bottom. Main floor boasts open kitchen with new granite counter tops, new stove/fridge/dishwasher, open concept living/dining area and a new electric fireplace and skylight. Insuite laundry and half bathroom on the main floor. The exterior was fully redone so this home is new inside and out! Sit back and relax in your very own 300 SQF patio, Complete with underground parking and storage locker. Open House March 12th Sunday 2-4PM.