Already know what monthly payment you can afford, but wonder what that means in terms of what homes you can afford?
Here are a couple of tools to calculate what your payment would be based upon various mortgage types:
Consider factors such as your income, expenses, savings, etc. An affordability calculator can assist in determining what your price range should be, but will not substitute for the valuable advice of a financial consultant.
Yes, but it is a juggling act. If you buy a home before yours sells, you may become financially overextended. If you sell before your buy your new home, you might need to rent for a while. You can do the transactions simultaneously by placing a “sale contingency” in your contract, but the downside is that it may be difficult to get the seller of the home you are interested in to wait to close until your property sells.
As many as you want or need to feel confident in your decision. Some people find their dream home on day one, while others may spend months before they find the right fit.
Generally speaking, making an offer 5% below asking price won’t offend sellers. If the property has been on the market for an extended period of time, you could conceivably offer even less. That said, several factors including current market conditions, the desirability of the property, the seller’s ability to hold, etc. will influence negotiations.
As with any investment, there is always some risk associated with the potential reward. The best approach is to do research on area comps, a task a Realtor will happily assist you with.
Though there are several factors that can speed up or slow down a closing, such as time needed for inspections, corrections, appraisals, etc., typically one can close escrow within 30-45 days of entering contract.
Typically a home inspection is a good idea so that you can avoid unforeseen expenses for fixing issues you might not otherwise be aware of, such as plumbing, electrical, roof, etc. If issues arise, you can consider negotiating with the Seller to make appropriate adjustments. Sometimes a property will sell in “as is” condition, potentially negating the need for an inspection, though such condition should be reflected in a reduction of the asking price.
Buyers can always back out of a deal before it closes, but if they don’t have a justification, they can potentially lose the earnest money deposit (usually 1%-2% of the asking price). Contingencies provide buyers with loopholes to avoid loss of their deposit. So, if you are concerned about unpleasant surprised that could lead you to back out and lose your deposit, consider placing contingencies related to the home’s inspection and/or appraisal to protect your deposit.