Purchase a House You Can Afford

Buy the house I love or love the house I can afford?

The following money minute is brought to you by Consumer Credit Counseling Service of Greater Atlanta.

Have you ever visited a decorated model home in a subdivision you would love to live in, but realize you cannot afford any house in that neighborhood? That’s a common occurrence many prospective homeowners have experienced. Well, don’t let that derail your dreams of homeownership. Instead, you should focus on finding a home that fits your current budget and begin the process to purchase a house you can afford today.

Here are three things you can do to begin the process of buying a house you can afford:

First, consult with a loan officer to get pre-qualified for a mortgage that meets your budget. You want to ensure your monthly mortgage payments are affordable for you and your family.

Second, learn about all additional costs you will be required to pay when purchasing your home. Knowing all of the potential costs is critical to establishing a budget and creating an action plan for homeownership.

Third, determine your overall housing expenses. Along with the principal and interest payments, you will also have other costs, such as property taxes, hazard insurance, and maintenance fees.

To learn more about preparing for mortgage approval, take the course: