Every day, I get an email or a call from a buyer who wants to go out and see some homes that are for sale. My first Question is always: What is your price range?
Inevitably, the answer will be " Oh, I don't know, probably around xxx or yyyy. I looked online and calulated monthly payments so I'm comfortable!"
My inner little voice sighs deeply....."Have you spoken to a lender?" I ask.
Unless you speak with a lender who runs your credit and checks your finances, you really do not know how much you can afford. You just think you do. If your credit is poor, your interest rate will reflect that. And different loans charge different fees.
So, before you even start looking online for your next house, call a lender!! The saddest thing for buyers is to fall in love with a $400,000 house only to then be brought back to reality and find out that they can only afford $325,000.
So...Step 1 of the Homebuying process is to speak to a lender!