Buying a new home is an exciting experience, but it can also be overwhelming, especially if this is your first time buying a home. There are a number of factors to consider when searching for homes for sale, including your budget and financing options. This mini Dayton Ohio home search guide will provide you with valuable information to help you get started finding your perfect home.
Know Your Budget
One of the most important things to consider when you are thinking about buying a home is determining how much you can afford to pay monthly. Before you begin your search for homes for sale in the Dayton area, it is essential that you create a budget.
To estimate the amount you can afford each month for the mortgage payment, use your current income and deduct your current expenses, which should include: car payment, insurance payments, estimated utility costs, personal items, living expenses, and current rent payment.
Estimating a Mortgage Payment
Once you have determined the amount of your current expenses, it will be easier to determine what you will be able to afford for your mortgage payment. Estimate the amount for the mortgage payment, property taxes, interest and insurance by using this simple formula:
The cost of the home-minus the down payment-multiplied by .008.
For example, if the purchase price is $200,000-minus a $10,000 down payment-the remaining loan amount is $190,000. Multiple $190,000 times .008 = $1520, which is an estimated amount of your mortgage payment.
Pre-approved financing will provide you with a better idea of how much you can spend on a home. When researching the financing options, it is important to understand the difference between split, fixed and variable interest loans before you sign a finance contract. Once you have pre-approved financing in order, the next step in your Dayton Ohio home search guide is to contact an exclusive buyer’s agent to help you find your dream home.
If you are ready to start looking at homes for sale, contact Buyer’s Corner Realty for help searching property in Dayton and surrounding areas.