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Stephanie Souza-Breault
(805) 556-3100
(805) 440-0678
stephaniebreault@mac.com

CalBRE# 01980090
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Stephanie Souza-Breault
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(805) 556-3100
(805) 440-0678
stephaniebreault@
mac.com

CalBRE# 01980090
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(805) 556-3100
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How much house can I afford?

The journey to homeownership starts by understanding how much you can afford. One major thing to consider is your down payment, if any. Many consumers believe it's impossible to buy a home without at least 20 percent down.

But thanks to various government-sponsored programs, Many people can now buy a house with as little as 3.5% toward a down payment and Veterans of the U.S. military have zero-down programs available.

Pre-Qualification vs. Pre-Approval

  • Pre-qualification and pre-approval are two terms you'll hear frequently when preparing to buy a home; however, they are not interchangeable.
  • Pre-qualification is a simple estimate of how much you could afford
  • Pre-approval is when you get your mortgage loan amount approved.
  • You don't need to be pre-qualified to start looking for a home, but you will need to be pre-approved before you begin negotiating. If you find a house you like and make an offer that is accepted you have 3 days to provide a letter from you lender that you are pre-approved.  So it’s best to get this part out of the way early.  
  • The home-financing process can be completed directly through our affiliated home financing services, a mortgage broker, or through your own bank. Ask your loan officer about paperwork required for applying and you could get a decision in a matter of days.  If you don't know where to start on this subject - let me help you thru the process.  I have several lenders that I work with that can help you get started.  They can run your credit and give you pointers on what you need to do in order to start you home buying process.  

Considerations / Closing Costs

  • Once you've been pre-approved, the real fun begins and it's time to find your dream home. When looking for homes, keep in mind your current income. Although you might be pre-approved for a certain amount, are the payments on that loan feasible for you to make every month? Ensure that the price range you're looking at is sustainable for your current lifestyle and budget.  
  • When buying a home, you'll also be required to pay closing costs. These are essentially fees charged by lenders and other third parties involved in the purchase of your new home. Closing costs can range between 2 and 5 percent of the home price, and payment is required before you close on your new home. In addition to your down payment, be sure you have money set aside to cover closing costs.  Your lender or agent can help you in determining what these will be so you can make sure you have the finances set aside for the closing costs.
  • As a homeowner, you'll begin to pay property taxes. The amount of tax you pay depends on where the property is located. Rates vary, but thanks to California's Proposition 13, your annual property tax liability will remain mostly predictable year after year.