Buying a new home is very exciting but it is often very stressful and confusing as well. Understanding your financial obligations, how much your monthly payment will be, what expenses your will be responsible for in the closing process, etc. can leave you scratching your head in confusion. Not every homebuyer is an expert in real estate, mortgages, or the home buying process in general and they should not have to be! While it is always a great idea to arm yourself with as much information as possible it is also important to work with a mortgage lender that you trust. This is particularly true when it comes to projecting your monthly mortgage payments so that you can rest assured you will feel comfortable making those payments.
Many homebuyers are approved for a maximum loan amount that is far higher than they actually feel comfortable spending. Even if the lender wants to give you that money you may not want to make such a large payment each month and it is very important to feel comfortable with what your monthly mortgage payment will be. It can feel very confusing to try to determine what your projected mortgage payment will be on your own so it is a great idea to meet with your mortgage lender before you put in an offer so that you can feel comfortable with your projected monthly payment. A reputable and experienced mortgage lender will be more than happy to walk you through what to expect and how to project what your monthly mortgage payment will be based on the home you want to buy.
While you may be able to calculate principal and interest you may forget other important things to consider. These things include a potential PMI payment, HOA fees, property taxes, homeowners insurance, etc. Those things are all part of what it will cost you to buy your home but don’t forget things like the cost of utilities and maintenance. By projecting what your monthly mortgage payment will be, you will be able to take a step back and look at the situation realistically. Armed with all of the information you need from your mortgage lender, you will be able to make an educated decision about just how much home you can afford before putting in an offer on a home or worse – closing on a home and suddenly realizing your monthly mortgage payment and homeowner’s expenses are much higher than you anticipated, leaving you cash-poor. At Zenith Home Loans, we are more than happy to answer any of your questions at any point in the home buying process so that you can have the information you need and enjoy buying your new home.