The first thing a prospective buyer needs to accomplish that will assist in determining if they can afford a home is, prepare a financial statement. This financial statement should include your monthly income, your monthly expenses, and your net worth (your assets minus your liabilities). This will help you develop a criteria that reflects the mortgage payment amount you can realistically afford. When it comes time fill out your loan application the financial statement information you have collected will come in handy as well. Once you have determined the amount you can afford, only shop for homes in the Anaheim area that fit your criteria. It really does not matter how much debt a lender says you can afford. Ultimately you as the buyer determines what you feel is a comfortable monthly mortgage payment that you are willing to commit to each and every month. What this means is, now is not the time to exaggerate your income, or underestimate your expenses. Lets be realistic here, and when you make that first payment you will be glad you did.

The next thing a buyer needs to determine is what the down payment and closing costs will be. Typically a buyer needs to come up with five to twenty five percent of the homes value for their down payment in order to qualify for the loan. While a number of lenders offer first time buyer programs with as little as three percent down, these are generally not the best choice. These type of first time buyer loans usually come at a higher than average interest rate and contain prepayment penalties. If a buyer can come up with a larger down payment it will make it easier to qualify for a loan as well result in a lower monthly payment. Another thing a buyer needs to factor into their home purchase is the closing costs. Typically a buyer will be expected to pay two to five percent of the cost of the home in closing costs. This pays for the Realtor’s fees and the property listing fees. You will also need to have sufficient reserves to pay two to three months worth of your PITI. PITI simply stands for principal, interest, taxes, and insurance.

By taking into consideration these simple facts you will be able to determine what you can afford and the Anaheim Ca home for sale that is right for you.

Check Your Credit

When purchasing a home you want to be able to receive the best mortgage loan interest rate as possible. This will help reduce the amount of the mortgage payment you will be making every month. One way you can insure a better interest rate is check your credit. Six months before you start looking for a home, order a credit report online. Verify that the information in the report is correct and try to fix any issues you find. Remember the higher the credit score generally translate into a lower mortgage interest rate.

Stay In Your Price Range

Buy what you can afford, not what you want. One of the most common mistakes of home buyers, is purchasing more home than they can afford. The basic rule to live by is, do not purchase a home that costs more that two and a half times your yearly salary. If you have any questions there are mortgage calculators online, that can assist you in figuring out what your monthly payments will be based on the purchase process. Make sure you know what you can afford before you even start looking. This will not only be benefit you but will also assist the realtor in showing you homes that are in your price range.

Are You A First Time Buyer?

If you are a first time home buyer ask your lender or do some research online about the down payment assisting programs available to you. If you do not have the usual twenty percent needed for your down payment, there are first time home buyer that can help. There are programs available that will require as little as, three percent of the purchase price, for your down payment.

Research The School Districts

If you have school age children or are planning on having children in the future, make sure you are buying in district that has good schools. Even if you don’t have children when it comes time to sell, statistics show that it is easier to sell a home in a good school district. Look for Anaheim Ca homes for sale in the Anaheim hills area, they have great schools.

Finding A Reputable Realtor

Looking for Anaheim Ca homes for sale can be overwhelming. Find a reputable realtor to assist you in the home purchasing process. You want to find one that will have your interests in mind. Ask friends and family members who they would recommend, as well as do research online for the top producing realtors in the Anaheim California area.