Your monthly budget.

Before talking to a lender, have a monthly payment in mind that fits your budget. Your lender will ask questions to understand your financial position and calculate the purchase price. Remember to keep some money in reserve for first year expenses including updates, renovations, maintenance, and repairs.

Here are some of the expenses you will carry:

Down Payment

Most homeowners contribute a down payment when purchasing a home. The down payment is a percentage of the purchase price that the buyer pays in full before closing. The larger the down payment, the smaller your mortgage will be. How much can you put down comfortably?

Cost

There are quite a few costs when you’re buying a new property. Make sure you understand how much each cost is and factor them into the final budget. Here are some examples of these costs:

Monthly Costs: The calculation of your entire monthly costs including the mortgage, insurance, taxes, etc. Don’t forget expenses and bills for your home and maintenance.

Points: Borrowers have the opportunity to reduce the interest rate on their mortgage by paying points at the beginning of the loan. One point is one percent of the new loan.

Additional Fees: Your lender can help you understand any additional fees you may incur.

New Home Expenses & Repairs: Even with a thorough inspection and seller repairs, you will likely have repairs and maintenance costs arise upon move-in.