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Before Viewing Homes For Sale Know What You Can Afford To Pay
efore contacting a realtor household furnishings, your
and begin looking at homes current home and any other real
for sale, there are a few estate, vehicles, recreational
things you need to do. Your vehicles and equipment, furs and
realtor will assist you in jewelry, guns, electronic
discovering how much home price equipment, loans owed to you, any
you can afford, but he/she needs vested equity you own, cash and
information from you to do it. surrender values of insurance
So, go prepared with your policies, collectibles, and
financial data to your first precious metals and gems.
appointment with your realtor in
order to begin looking at homes Now, list the value of each item.
for sale immediately. This is the amount you believe
you could sell the item for cash
To determine a homes for sale within a reasonable timeframe.
price that you can afford, you Deduct any money owed on the item
need to review your financial from the sell price. For example,
situation to determine how much you might be able to sell your
down payment you can afford and current home for $150,000, but
how large of a monthly payment you owe the mortgage company
you can comfortably handle. $75,000 (pay-off amount) and
another $3,000 in property taxes
Net Worth that would come due before it
So, before looking at homes for could be sold.
sale, put together a statement of
your net worth. Begin by doing an Now, list all of your
inventory of all your assets liabilities. They are anyone to
(what you own that may be sold whom you owe money for whatever
for cash). This includes all reason. They include mortgages,
investments, savings accounts, loans and credit lines of any
types (including credit cards), following items: Insurance
and even your Uncle Bob that premiums, all household expenses
loaned you $2,000 last summer. (including cell phones and DSL
costs), any taxes owed but not
Total your assets and already withheld by your
liabilities. Then, subtract the employer, all transportation
liabilities from your assets to costs (include maintenance, fuel,
determine your net worth. and licensing), clothing costs
(new and maintenance), pocket
Down Payment money for family members,
To determine your possible down groceries, personal care,
payment for a homes for sale, recreation and entertainment,
take your net worth and subtract medical and dental costs,
out the following: Savings for charity, special expenses (such
emergencies, education and as tuition), and miscellaneous
retirement; settlement and moving costs. Divide into monthly costs
costs of buying the homes for any expenses paid quarterly or
sale; and cash you will need to annually.
improve, decorate and furnish the
new homes for sale. The remaining Now, total your monthly expenses.
is your possible down payment. Subtract out your monthly
mortgage or rent. Subtract the
Monthly Payment remaining expenses from your
Next, calculate the possible total monthly household income.
monthly payment you can afford This is the amount you can
for your homes for sale. List all comfortably pay for a monthly
of your actual and projected mortgage payment on a homes for
monthly expenses. Include all the sale.
monthly costs of your liabilities
listed above, adding the If the monthly payment for a
homes for sale seems a bit low, payments.
review all of your monthly
expenses. Where can you decrease Once you have this information in
or eliminate expenditures? For hand, your realtor can determine
example, paying off your just what you can afford to pay
high-interest credit cards to for a homes for sale.
eliminate the high monthly
About the Author:
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit San Diego Homes for Sale
Read more articles by: J Harris
Article Source: www.iSnare.com |
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