An article published by Forbes analysis’s the best way home buyers can afford to purchase their dream home in a pricey neighborhood. With prices rising on the Eastside rapidly, I have taken a few of the major key points from the article and summarized them for the benefit of buyers on the hunt for their perfect abode.
“Calculate your home budget from your rent”
As Forbes describes, one way to calculate a mortgage you can comfortably afford, is by using your current rent as a starting point. By using your monthly rent as your housing costs, you can include additional taxes and fees expected to come with a full mortgage (i.e. mortgage interest rate, property taxes, insurance) while using their assessment calculator.
“Don’t fixate on one neighborhood”
You may have your mind set on one neighborhood, and while having a goal set is helpful, it might not always be practical. By expanding you search to a neighboring area, you might be able to find a home with a better school district or even more space.
“Maximize your credit score”
A higher credit score means your mortgage interest rate will most likely be lower and gives you the chance “buy more home for what you can afford every month”. Additionally, increasing your credit score will mean you have the potential to be approved for a lower down payment.
“Downsize your lifestyle while saving for a down payment”
Save, save, save! Downsizing your apartment to a smaller layout or less bedrooms can help you save a large chunk of money each month. For families where this is not a practical option, Forbes offers families find additional areas to downsize and save money. These include, finding new transportation or using public transportation, choosing to cook at home, or “forgoing small luxuries”.
To read the full article from Forbes click here.