Buying Southeast Michigan Real Estate? How Much Home Can You Really Afford?

Posted in Southeast Michigan Real Estate by Michigan Real Estate Expert on November 10th, 2008

Buying a home is an important decision. Owning Southeast Michigan real estate can be your greatest financial asset when it builds equity over time. It can also be your greatest financial nightmare if you end up losing it to foreclosure. This is why you want to find an Oakland County home in Southeast Michigan, at a reasonable price with a payment that fits within your budget. Before you start looking at homes, make sure you know how much home you can afford.

  • Be realistic. Get pre-approved for a loan before you start looking for Southeast Michigan real estate. This way you won’t waste time looking at homes you can’t afford. Just because your lender approves you for a loan doesn’t mean you have to use the entire loan amount. Take a look at your financial situation, including the amount of credit you have, the debt you owe, your monthly income, and your lifestyle.
  • Consider the cost of homeownership. When you rent a home from someone, your landlord is responsible for maintaining the property. As a renter, you don’t have to take care of the roof or pay for pest control. This is included as part of your monthly rent. However, as a homeowner, home maintenance is your responsibility. Make sure you can set aside money to cover regular home maintenance costs and any surprise repairs that may occur.
  • Practice with your finances. If you’re not entirely sure how much you can afford to spend for your monthly payment, try it out. For example, if you want to buy a home that costs $225,000, use a mortgage calculator to determine what your monthly payment would be. Then subtract that amount of money from your budget for the next few months and see if you still have enough to pay the rest of your bills. This will give you an idea of whether or not the payment fits in your lifestyle.  And, you’ll have that extra money saved for a down payment to purchase Southeast Michigan real estate. 

I’ll send you a free book for home buyers, “Let’s Find Your New Home.”  You’ll learn all there is to know about buying a home from start to finish.  And…it’s absolutely free with no strings attached.

Your home is an important investment that should be a part of your overall financial plan. I’ll help you find and buy the right home for your needs and budget.  As a licensed real estate broker and lawyer, I’ll keep you from making mistakes that could cost you thousands. 

Let me help you find the home in Oakland County, Southeast Michigan, that fits your lifestyle and needs.  Drop me an email me at now.  Or, call me at 248-514-2640 and let’s talk real estate! 

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
Call:  248-514-2640

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