Finding your dream home is exciting and every mortgage broker wants to help you get the financing you need to get into the home of your dreams. However, you need to enter the world of home buying with a budget and an expectation of what you can reasonably afford to purchase. Some people can get wrapped up in the bells and whistles of a new home that they agree to take out the maximum amount on a home loan. Kwinana, Rockingham and Baldivis mortgage brokers can help you figure out how much home you can afford and what you should reasonably finance to ensure that you can make the monthly payments.

Work with a Mortgage Broker before House Hunting

Before you start house hunting and get your heart set on a particular home, you should speak with a broker at Smartline Mortgage Brokers Rockingham. A mortgage broker can help you organise your finances to determine exactly how much home you can afford. By looking at your current income, savings and credit background, a broker can give you a general idea of how much you can reasonably afford to pay each month. The key to having a good home loan is to choose a loan that won’t cause you to go into debt or make your money tight each month.

Create a Budget and Stick to It

You need to create a home buying budget. This means that you need to know the maximum you can afford to purchase and not look at homes above that maximum. Even if you get pre-approved for a larger sum of money, don’t give into the temptation to start looking at homes above your budgeted price range. This will only cause you to find homes you like that you truly can’t afford. Work up a spreadsheet of your monthly expenses and see how much you can tack onto your monthly expenses to help determine how much money you should borrow. Mortgage brokers in Rockingham and the surrounding areas can look at your spreadsheet and help you create a budget.

Take Your Down Payment into Consideration

Remember to include the amount of money you’ll put down on the purchase price into your estimate. If you’re putting down more than 20% of the purchase price, you may not have to finance as much money. If your goal is to have a low monthly mortgage payment, consider saving a bit of money before applying for a loan. Mortgage brokers in Baldivis, Kwinana and Rockingham can help you calculate how much your payments will be with various down payment amounts. This way you will be able to stay in budget and not go into debt trying to buy a home.

Talk to us at Smartline Mortgage Brokers Rockingham for help getting the right mortgage for you.