One of the first steps to get started on this exciting journey is planning ahead. Here are some tips to determine how much home you can afford to purchase.
- Assess your current financials
- Thoroughly evaluate your monthly income and expenses
- Create a savings plan
- Review your budget on a regular basis
- Make simple, logical changes
Setting a home buying budget involves more than seeing if you can swing a mortgage payment. Staying organized and saving money early will have a greater impact later. Talking to a George Mason Mortgage Loan Officer as early as possible will help in figuring out your sweet spot of affordability.
TIP: If you are ready to buy soon, set aside important documents such as pay stubs, bank account statements, W-2’s and tax returns for the past two years.
The Great Mortgage Myth
It was once believed that 20% was required for a down payment. This is a myth!
You can buy a home without having 20% to put down. Your down payment can come from bank accounts, stocks or mutual funds, an inheritance or a gift from a family member and even a retirement portfolio.
The good news for homebuyers today is that there are a variety of financing options available* and some of these programs even fund the down payment portion or have low down payment requirements.*Not all borrowers will qualify for all programs.