I am a 25 year old college student looking to purchase our first home. I'm not sure where to begin, or how to establish our price range?
Answers | 3
Your first step would be to meet with a mortgage professional. He or she can provide you with a list of documents that would be required to establish what you qualify for. You may even qualify for down payment assistance. If you are in Ca. I can help you.
I would look at what you pay in rent now and ask yourself if your income is stable and expected to continue as is, and also if you are comfortable with what you pay now. (If you are barely scraping by, or you always have plenty of excess cash at the end of the month, you have room for adjustment.)
Based on those factors with current interest rates you can determine with a pretty good ball park what sort of mortgage you could qualify for before ever involving mortgage brokers. If you don't like the results, make some changes to get to where you want to be. If it seems like it would work then move forward. I would encourage you to be mindful of spending too much. I bought my home in 2006 at the peak, and that was a big challenge for a new kid who just graduated college and was going to Grad school. I focused on owning that property and paid it off free and clear. The price of the property is merely a number at this point.
Enjoy the ride.