How Much House Can You Afford?

When you’re shopping for a home in Colchester it’s easy to get carried away and imagine yourself in a dream home that you really can’t afford. You may try to calculate how you could purchase the home to make your dream come true but it’s important to know exactly how much house you can afford before you even begin your search. You must remember that you won’t just be paying a mortgage payment; you will also need money to keep your household running and enough to cover any emergencies that will arise from time to time. Colchester is an area with plenty of diverse property so you should be able to find a nice home within your price range. So, how do you figure how much you can afford to pay for your mortgage? Take note of the suggestions discussed below so that you can work with your estate agent to find the right home at a price you can really afford.

• Start figuring out how much you can afford for your mortgage by getting a paper and pencil and gathering the documents pertaining to how much you owe for other loans and debts. Gathering this information will give you hard data regarding your current financial obligations so that you can begin to see how much extra money you have left over each month that you could apply to a mortgage payment. If the money you have coming in is more than what goes out each month, you should visit flagstone.co.uk so that you can connect with a team of mortgage professionals who can provide you with some excellent advice about how to proceed with your plans to buy a home.
• What upcoming expenses are you planning for with your financial advisor? Do you have children who will be heading off to university? Will your parents need specialised care for which you will be responsible? Think about some of the expenses that are in your near future before you make a commitment to a mortgage payment that will deplete your funds. And you should never drain your savings account to buy a house. This is money you have set aside for emergencies and unexpected situations; it’s always important to have extra money in a savings account.
• What interest rate will you qualify for when you buy a home in Colchester? If you choose a variable rate of interest, remember that your mortgage payment can increase as interest rates rise. If you have just enough money to pay the initial payment scheduled, you should perhaps consult your mortgage advisor about a lower payment over an extended period of time or ask your estate agent to show you a more affordable house.
• What type of down payment will you be offering? The more that you can save to put towards the purchase of your home, the smaller your monthly mortgage payments will be. It’s a good idea to set aside some money each month in a housing fund so that you’ll be able to afford what you want when you find it.