How Much Mortgage Can You Afford?

There are so many factors that go into finding and securing the financing to buy a home.   While lenders require quite a bit of information for you to get a loan, you still need to be aware of your own financial picture. Even if you’re pre-approved for a certain amount of money to buy a home, you still need to dig into your finances a bit deeper than a lender would. The bottom line is that you can’t rely solely on a lender to tell you how much you can afford for a monthly payment on a home. Even if you’re approved to borrow the maximum amount of money for your finances to buy a home, it doesn’t mean that you actually should use that amount. There are so many other real world things that you need to consider outside of the basic numbers that are plugged into a mortgage formula.   

Run Your Own Numbers


It’s important to sit down and do your own budget when you’re getting ready to buy a home. You have plenty of monthly expenses including student loan debt, car payments, utility bills, and more. Don’t forget that you need to eat too! Think about what your lifestyle is like. How much do you spend on food? Do you go out to the movies often or spend a regular amount of cash on clothing? Even if you plan to make adjustments to these habits when buying a home, you’ll want to think honestly about all of your needs and spending habits before signing on to buy a home. 

Now, you’ll know what your true monthly costs are. Be sure to include things like home insurance, property taxes, monthly utilities, and any other personal monthly expenses in this budget. If you plan to put down a lower amount on the home, you’ll also need to include additional insurance costs like private mortgage insurance (PMI).

The magic number that you should remember when it comes to housing costs is 30%. This is the percentage of your monthly income that you should plan to spend on housing. Realistically, this could make your budget tight so this is often thought of as a maximum percentage. By law, a lender can’t approve a mortgage that would take up more than 35% of your monthly income. Some lenders have even stricter requirements such as not allowing a borrower to have a mortgage that would be more than 28% of monthly income. This is where the debt-to-income ratio comes into play.

As you can see, it’s important to take an earnest look at your finances to avoid larger money issues when you buy a home.  

Benefits of an Open House for Home Sellers

An open house represents a valuable opportunity for a home seller who wants to generate interest in his or her residence. This event enables homebuyers to get an up-close look at your house, and ultimately, may help homebuyers become comfortable with submitting an offer for your home.

For home sellers, there are many great reasons to devote time and resources to get your residence ready for an open house, including:

1. An Open House Gives You a Chance to Make a Positive First Impression.

Any home seller can showcase his or her residence online. Conversely, it takes a dedicated home seller to highlight the true value of his or her house to interested homebuyers as part of an open house.

With an open house, you can boost your home’s chances of making a positive first impression on homebuyers. Because homebuyers can browse your home with ease, they will be able to evaluate it in a no-pressure situation.

Plus, if you employ a real estate agent, this professional will be available to provide homebuyers with additional details about your residence during an open house. Your real estate agent might even be able to offer information to homebuyers about your residence that they won’t be able to find online as well.

2. You Can Choose the Date and Time of an Open House.

Unlike a home showing, a home seller can select the date and time of an open house. This flexibility ensures a home seller can plan accordingly and guarantee his or her house is clean and neat when the big day arrives.

In most cases, home sellers will host an open house on a Saturday or Sunday, and the event may take place over the course of an afternoon. Meanwhile, an open house might even feature fresh-baked cookies, coffee and tea and other assorted snacks and beverages that homebuyers can enjoy as they check out your residence.

3. You May Be Able to Convince a Homebuyer to Make an Offer.

The odds that a homebuyer will submit an offer on your residence without an in-person evaluation of your house are slim.

On the other hand, after a homebuyer walks around your residence and envisions what life might be like in your home, he or she may be convinced that your house is the perfect choice. Thus, he or she may make an offer on your residence, which means you can move one step closer to selling your house.

When it comes to hosting an open house, you’ll want to prepare as much as possible. And with a dedicated real estate agent at your side, you’ll be able to receive expert tips to get ready for an open house. This real estate professional understands the importance of an open house, and as a result, will do everything he or she can to help your residence stand out to homebuyers, too.

Prepare your residence for an open house, and you could improve your chances of generating significant interest in your residence among large groups of homebuyers.

Condo – 32 Shamrock Unit 32 Sterling, MA 01564 is now new to the market!

FALL SPECIAL- FIRST 5 THAT GO UNDER AGREEMENT THIS YEAR GET FREE AIR CONDITIONING ( A $5000 VALUE). TAKE IT OFF THE PRICE OR CREDIT BACK TOWARDS OTHER UPGRADES! This is the newest townhouse development in Sterling. No age limit! Last phase! No more after this! This one is the Gala style. The Gala units has the master bedroom on the first floor. Spacious open floor plan has the kitchen, dining area and living room all open and with gleaming hardwood floors. The living room has soaring cathedral ceilings and propane fireplace. The upstairs boasts of another large bedroom, full bath and spacious loft area that looks down to the living room. A three season sunroom, propane hookup for kitchen stove, fireplace with blower,central air and walk-out basement are included in this price. All units have two car garages, granite countertops, open first floor living and much more. There are many upgrades/options available. Each building has two units, which means you always have an end unit!

This is a Townhouse style home and features 6 total rooms, 2 full baths, 1 half bath, 2 bedrooms, and is currently available for $385,678.

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