When you start to think about buying a home, there are two things that need to be done.  First, take a look at your finances.  Second, make a list of what you need, what you want, and what you absolutely must have in a home.  Each of these items is important before you talk to an agent.  That agent wants to help you find the perfect home with all the requirements you have and put you into that home in a way that meets your financial needs.   If you start by developing this information, your agent can help you reach your goal.

Most of us do not have the ability to just go out and buy a home without a financial care.  Acquiring financing takes a little work on your part, but don't let the thought of it stop you from fulfilling your dream.

1. Each financial institution has their own set of rules for making loans.  In general, the bank will let you use 28% of your total monthly gross income to pay for mortgage payments, insurance costs, and taxes on a house.  Take your monthly income times 28%.  A bank also generally uses a rule that your fixed expenses each month should not take more than 36% of your gross income.  List your regular monthly payments, and see if they take less than the 36% amount.  If your expenses are less than 36%, and you can comfortably set aside 28% to cover the cost of a home, then you should proceed to Step 2.

2. Shop around for the best financing rates.  You may want to start with whatever institution you presently have accounts.  Check other institutions in the area, on the Internet, and talk to friends and family about their financing.  Over the life of a loan, a few questions here and there can save you quite a lot of money in interests costs.

3. The trend today is for people to visit their financial institution first and then see a real estate agent.  Pre-qualifying lets you know exactly how much money you can count on from the institution.  Now you have something to help you set the limits of what you can easily afford.

Your next step is to call Craske Real Estate, or stop by our offices and get acquainted with our staff.  This agent will make all the arrangements to show you homes after you have studied the information pages we have on file for all of our homes.