You’ve probably already heard that before you start your search for your first home you should establish how much you can afford to spend.  But many home owners don’t know where to start to figure this out: Here are some tips on figuring this out.

Figure out your DTI:
Many lenders use your Debt to Income ratio in figuring out how much they are willing to let you borrow. Contact a mortgage professional to get pre-approved to find out what a lender is willing to lend you based on your scores and income.

The Lender is Going to Tell You the Maximums:
Just because you qualify for a certain amount doesn’t mean you can actually afford that figure. You need to examine your expenses and lifestyle to see whether you can and are willing to pay the maximum month after month. Think about what other major expenses you are responsible for, i.e. auto repair bills, educational costs, high medical expenses ext, and factor these in to what you want to borrow.

The Loan Amount Isn’t the Only Monthly Payment:
While it is extremely important to figure out what your monthly principle and interest payment is to the lender, you also need to factor in monthly amounts for property taxes, home owners insurance, home owners association dues and regime dues (if any). Also find out what average utility costs are in an area you maybe considering. Add all of these costs to the monthly mortgage payment to figure out what your total fixed housing expenses will be.

Things Come Up, Don’t Put All Your Money Into Your New Home:
Plan on having several months’ worth of income in a savings account for emergencies. You should allow for money towards start up costs. Inevitably when you move to a new place you’ll be spending money on paint, new furniture, window treatments, new tools and equipment, and these things should be factored into your housing plan.

Think Down the Road:
Think into the future if you are considering a growth in family size or a loss of income you may want to be more conservative in the amount of your first home. On the other hand if you foresee an increase in your income you may want to borrow the maximum if you are willing to stretch your monthly budget for the first couple of years.

The Real Buyer's Agent - (800) 884-0818

The Real Buyer's Agent is a full service real estate company serving homebuyers throughout the Charleston area. Our goal is to guide you through every step of the home buying process, from locating that perfect dream home for you and your family to signing all the necessary papers during closing. If you are interested in purchasing a home in the Charleston, South Carolina area – whether it’s a house, town home, condo, resort property, or land – you have come to the right place. Our team works daily to research not only the Charleston real estate market, but also the communities that make Charleston such a desirable place to live. We continuously stay informed of the performance of both public and private schools and the ranking of our local colleges and universities. We also keep up with the local cultural offerings and sporting events. Most importantly, when dealing with our customers we work educate them about all facets of the Charleston real estate marketplace. The majority of real estate agents owe their loyalty to the seller, not the buyer. The Real Buyer’s Agent works directly and exclusively for buyers only. Our clients pay no additional fees for our exclusive service. Nearly every property on the market, new or previously owned, has a commission built into its sales price. The money our company earns from the transaction comes from that built-in commission. So if you don't use an exclusive buyer’s agent, you may not be represented at all. Whether you're looking for real estate in Charleston, Mt. Pleasant, Isle of Palms, Sullivan's Island, Wild Dunes, James Island, West Ashley, John's Island, Wadmalaw Island, Kiawah Island, Seabrook Island, North Charleston, or any other area we serve, the team at The Real Buyer’s Agent has one goal: to help you find and buy the home you want, for the best price and best terms.Start your online Charleston home search now or call (843) 884-0888 to speak with one of our agents today.