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.
January 5, 2016
Open House. Open House on Thursday, January 7, 2016 4:00 PM - 6:00 PM
Categories:West End NW, New Westminster Real Estate
Please visit our Open House at 1425 DUBLIN ST in New Westminster.
Open House on Thursday, January 7, 2016 4:00 PM - 6:00 PM
This solid traditional 1940's family home is in the popular and sought after prime "WEST END" area, 4 bedrooms & 2 bathrooms 1700 SF home, living room BOASTS ORIGINAL CHARM with HARDWOOD FLOORING & brick fireplace. Separate basement entrance with 2 bedroom suite potential, beautiful private backyard fully fenced with lane access and just over 300 SF detached garage (Could be used as a workshop), carport & RV parking, roof is 4 years old, new hot water tank, full sized lot 46'x132' close to schools, transit & shopping. ALL FIRST SHOWINGS Thurs, Jan 7th, 4-6pm and Sat & Sun, Jan 9th & 10th, 2-4pm. Measurement approximately buyer to verify.