Step 3 - Home Buying Budget

You need to have a realistic home buying budget plan, if you're going to make your dream come true.

Where's the money going to come from? For many people, there are two main sources: from the sale of your current home and from a loan.

Want to learn more about getting a mortgage? Check out these pages where you can add your own information and stories and hear from others, including helpful Asheville area lenders.

...And here's another general page that will help you: Asheville Home Financing.

Selling your home may be necessary to buy a home in Asheville. You should invite three reputable real estate professionals to give you an opinion about what your present home may sell for and how long it may take. This will give you important information to plan your budget.

You want to be sure to get an open, honest answer from a Realtor, not one that is meant to attract your business. This needs to be reliable information for your budget planning. If you need a reality check, you can ask me. I may also be able to refer you to a reputable Realtor. I have a wide network and would be happy to refer you, if I feel confident in someone in your area.

DO NOT MAKE THIS MISTAKE!

Do NOT hire a Realtor to sell your home based on how high a price they think they can sell your home for or how fast they think they can sell it. You want an honest, open, realistic Realtor – someone you trust and feel comfortable with.

Be sure s/he prepares you a list of comparable properties that have sold near your home in the last six months. You need to know how much they sold for and how long they took to sell. You can also hire an appraiser, perhaps at a reduced rate, to give you a professional estimate. The bank’s appraiser has the final home-value-say in the end.

Talk with a lender.

S/he can help you with your home buying budget plan. And there’s no obligation to stay with the lender you first talk with, so there’s no time like the present to seek advice from someone. Double check to be sure you aren’t obligated in some way. If you sign anything, read it carefully - you may want to take it home so you can read it in private.

Find out if you qualify for a loan and how much. Find out what you may need to do to qualify or stay qualified. What kind of interest would you need to pay and how does it compare with other loans. What fees are involved. You probably shouldn’t go out and buy a new car! ...or any other item that would change your credit status.

Avoid lenders you aren’t familiar with. I prefer to work with smaller banks, too. I recommend Asheville Savings Bank. They’re small, friendly, local, easy to work with and usually about the best deal around.

So, how much can you comfortably spend on your home in Asheville? What is your home buying budget plan? Think it through and write it down.

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