Where should I live? How much can I afford?

Depending on how you are accustomed to make decisions, you could be the kind that falls madly in love at first sight or the one that will need to think through your answers in order to make a decision that will help you feel secure and certain.

Being the most basic of questions doesn’t mean the easiest to answer. I believe the answers to these two basic questions will be the foundation of which the rest of your decisions will rest.

Where Should I Live?

Rule of thumb– There is more than one right home.

Sometimes buyers can become overcome with emotion that they can be fixated on one particular property.  There is more than one right home.  When you are out looking, try to retain a little bit of perspective. Try to not get to emotionally involved with the seductive process of buying a home, it’s spending money, a lot of money!

Often times first time home buyers will fall in love with a house in a neighborhood that might not be the best fit with them.  Even though you’ll live in the house, you still have to travel through the neighborhood to get there.

Is it a nice neighborhood? Is there any obvious signs of vandalism? Is there a neighborhood crime watch group?  Are your neighbors your age?  Are there families around the same age as yours?  Are the school districts the right choice for your family?  To avoid making this mistake, spend a lot of time in the neighborhood before you buy. Drive to and from the house, go there during the morning, night time and weekends. Check out the local restaurants, grocery stores and businesses that you most likely will be frequenting. Think about whether or not this neighborhood will make you as happy as the house.

No one’s saying you shouldn’t take your time when finding the right house or neighborhood.  You should!  In fact, take all the time you need.  Don’t let your broker bully you into making a decision before you are ready to do it.

How Much Can I Afford?

The answer most experts give is this, if you can afford rent and have cash for a down payment, you can probably afford to buy.  However, the easiest way to find out how much you can afford is to get pre-qualified.

Many lenders I work with would be delighted to pre-qualify you in a preliminary way with no obligation.  Pre-qualifying is a fairly painless process.  You will be asked a few simple questions about your debts and assets and then apply some debt-to-income ratios that have proven successful over the years.  The lender then will be able to tell you a number which is the amount of mortgage you can support based on your income, assets, and liabilities.  At that point you can determine exactly how much house you can afford to buy.

Be cautious– don’t assume that because you can qualify for the biggest house on the block that you should take that full amount you have been pre-qualified for. Be sure to take into consideration other unexpected expenses and take a mortgage that makes you comfortable and works within your budget or means. Just because your lender tells you that you can qualify for more, doesn’t mean you should purchase a home for that amount. Be reasonable and wise.

If you would like for me to share my reliable lenders with you and see how much you can get pre-qualified for, please contact me.  I will be happy to email or connect you with some very professional Arizona lenders.