It is important to know how much you can afford before you start looking for a home. You should talk to a lender and get pre-approved for a loan. This will put you in a stronger negotiating position with a seller.

As a rule, your monthly housing costs should not be more than 28% of your monthly pre-tax income, including mortgage payment, real estate taxes, and insurance. If you have long term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Loans such as VA and FHA are more flexible with these basic guidelines.

Depending on which type of mortgage you select, you can consider homes in various price ranges. An adjustable rate mortgage will usually enable you to qualify for a higher loan amount. Remember, buying at the top end of your price range gives you more time to outgrow your home, and can save you money in the long run.

For professional advice on all aspects of buying and selling real estate call Juniper Realty, 781-769-4818 or email us at juniperrealty@aol.com