Good Prices For First Time Home Buyers Loans In Texas?

What’s A Good Price For First-Time Homebuyers?

Part 3

Today’s Rates

Those who are buying for the first time might want to aim for prices close to these levels, since starter homes are usually cheaper than others. Having said that, it’s always so simple.

Individual housing markets across the country have a variety of home prices, and a lot of cities fall over the median.

Another thing that is a limiting factor is the homebuyer’s finances, because there’s no way to buy more than you can afford to borrow.

The mortgage lenders and banks will go through your income, your assets, and your down payment, and they’ll tell you that you can only borrow so many dollars.

You can’t exceed your upper bound, but you can find out what it is by going in to get a pre-qualification or even a pre-approval.

You might dream of buying a home that’s worth $1,000,000, but your finances might ground you to something that’s $400,000 at most.

It’s still a good starting point, given that you’ll have established what your affordability and personal price ceiling are like. It also means that when you spend time on Redfin or Zillow, you can just set the maximum filters at $400,000 so that you don’t see anything above that.

If you find yourself not wanting to deal with anyone personally, you could choose to put your financial numbers through some mortgage calculators, but you need to be mindful of the fact that these aren’t nearly as accurate.

In either case, you need to look at things other than money, given how there are other factors in play. They include but aren’t limited to the features you’ll require, how long you intend to live in the home, why you want to buy to start with, and so forth.

Do You Hope To Live Above, Below, Or Just At Your Means?

Do you have fun making do with less? Or do you spend until you’re broke? There’s no law that says you must spend the full maximum that you can afford.

Many find it sensible to stay under their maximum so they walk away with a safety net for things that they can’t anticipate.

Let’s go back to our previous example, where you qualified for a maximum buying power of $400,000. It’s useful, certainly, although that doesn’t mean it’s mandatory to spend all that.

You have credit cards, right? Some issuers will give you credit lines up to $25,000. Did you run out and spend all of that? Unlikely. I doubt you even got close.

That number is just what they’ve figured out from your employment, income, and credit history.

Mortgage lenders also do this, using things like proposed down payments and debt-to-income ratio in order to determine your maximum purchase price.

Again, is spending that much even a good idea? Chances are good, particularly if it’s your first time, that you might be smart to aim somewhat lower.

Consider that homeownership typically comes with a lot of unexpected costs, although seasoned homeowners might not think of them as unexpected at all. However, if you’re a first-time homebuyer, they might just shock you.

Even your monthly bills for home maintenance can keep you up at night. If you weren’t already paying for trash, gardening, water, insurance, and other utilities, and now you suddenly are, it can be a jolt to you, and your bank account.

Also, don’t forget that property tax bill or your monthly mortgage payment. There’s also that new furniture you need to buy. You might even have a baby coming into the picture. It’s a lot to deal with!

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Contact us today Or Call Us @ (866) 772-3802 click here to go to the next article in this series.

Leave a Reply

Your email address will not be published. Required fields are marked *