Your First Step: Budget & Affordability
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.