Financing

The first step to buying a home is finding out what you can afford. You'll want to get pre-qualified for a mortgage loan early in the home-buying process. This helps determine what you can afford, and enables you to move quickly when you find the right home. It also indicates to the seller that you are serious and can afford to buy the property. A pre-approval is nothing more than a calculation done by a mortgage lender that tells you the amount you'll be able to finance through a loan and what your monthly payment will be. It pays to check with several lenders before you start searching for a home.

The price you can afford to pay for a home will depend on factors such as gross income, the funds available for the down payment, your debt and credit history, the type of mortgage you select and current interest rates among other things.