How Much Can I Afford

For all your Sedona Real Estate needs, call Toll Free 866-340-6013, cell 928-300-0849 or e-mail us.

Do you really know how much home you can afford in the Sedona Real Estate Market?

Not everyone does, and some spend more than they can afford on their mortgage. Most don't realize when first buying home how much really goes into owning a house. Not only is there the mortgage payment which may or may not include the principle, interest, insuance and taxes, but also any home owner's dues or maintenance fees.

Before you buy your dream home, sit down with a lender and go over all your finances to determine exactly how much home you really can afford. Most lenders will not let you spend more than about 28% of your income on your home. This will include all aspects of the home costs. Usually you should include items such as utilities and upkeep to be on the safe side.

Once the lender has gone through your finances and determined that you in fact can purchase a home, they will write up a pre-approval letter. This is a letter stating you have spoken with a lender and are approved to go forward with the purchase of the home.

Sometimes the lender will disclose an amount you are approved up to but this can be damaging if you are planning on offering less than the purchase price. The seller will think you can afford to pay the full price and may not budge on the listing. Its a good idea to be close enough with your lender to request an amount slightly higher than what you are offering so long as you are still approved for that. It shows you are tight on your budget and have done your homework and also have a lender working for you to help close the deal.

Remember, just because you can afford a certain amount doesn't mean you always have to push that limit. Maybe you want to consider future investments and purchases and maxing out your budget may not be the smartest idea. Keep your long term budget in mind when shopping and considering a price. Right now is an excellent time to buy as home prices are below market value and you could cash in on a much larger home than a couple years ago.

When the time comes to set out and search for that perfect Sedona real estate, call on the trusting and dedicated team of John Limotte. We can help you find the home of your dreams and help you close that deal!

For more information on buying homes or real estate in other states, please visit our affiliates

Anniston AL Real Estate - Gadsden Alabama Real Estate
Search all Birmingham real estate MLS and Anniston real estate, including Calhoun county real estate, Talladega real estate, Etowah county real estate, and Gadsden Alabama real estate.
For all  listings and needs in and around the Fairbanks Alaska real estate  and the North Pole area, call Wes Madden with your local Coldwell Banker. Wes can also help with all Fort Wainwright and Eielson Air Force Base homes for sale.
Durango Colorado Real Estate, Durango Homes for Sale
Search all Durango Colorado Real Estate and LaPlata County real estate. Durango homes for sale and property. South Florida Real Estate   Serving the South Florida real estate market for all your residential & commercial needs in the areas of Pembroke Pines, Miramar, Hollywood, Cooper City, Davie and Weston.