My Blog › January 2013
Nice one bedroom plus den south facing unit. Newer laminate flooring & bathroom with granite counter top. Updated kitchen & newer storage shelving in laundry room. Great party room for your special events. Rooftop deck with spectacular view...Bonus...2 parking stalls!
You will need cash for this one! Banks will not provide financing. A former Grow-op with equipment & plant pots still in place. House has to be remedied and repaired. A fire has caused major damage to house, roof, trusses etc. There is a lot of work to be done to bring this property into decent condition. All offers subject to court approval.
Why is it so important to know how much you can afford to spend on a home?
First, you don't want to buy a property and then find out, only after you’ve moved in, that you can't financially maintain it. That would mean having to resell it under stressful conditions.
Second, you don't want to settle for a property that's less than ideal, when you really could have afforded the "dream home" you've always wanted.
So how do you figure out how much you can afford to pay for your next home?
The first step is to talk to a good REALTOR®. He or she will help you gain a clearer understanding of how much your current home will likely sell for in today's market. That amount, together with other financial resources you might have (such as savings), will determine your down payment.
The next thing you’ll need to figure out is your mortgage. Your REALTOR® can help you find a lender who will take a variety of factors into account – income, credit rating, debts, expected down payment, etc. – to calculate the maximum amount of mortgage for which you qualify.
Say, through the proceeds of the sale of your home combined with your savings, your expected down payment is $90,000. If the lender authorizes a mortgage of $270,000, then you can afford a $360,000 home.
Of course, that doesn't mean you'll need to spend that much. In fact, a home that meets your needs in terms of property type, features, and neighbourhood, may in fact cost you less.
One thing is for sure. A good REALTOR® can work with whatever amount you can afford and show you homes on the market that most closely meet your needs.
Looking for a good REALTOR®? Call today.
High Bank Waterfont, small cozy house with partial basement. This cute home features oak Kitchen Cabinets, Gas Fireplace and newer oil furnace. Might be possible to rebuild the original beach house, the lot is steep to the water.