Before you go out looking for a home, it's good to get an idea of what you can afford. One quick way is to try our FINANCIAL CALCULATOR.  This handy tool will help you estimate how much mortgage you can handle before you start looking for a home.  Click here to open our calculator.

Another thing to consider is your down payment amount. It is very important to begin communicating with a mortgage company early in the process to understand and plan for the various loan product offerings available in the market when you are ready to buy.  You also want to be aware of any tax credits for new homeowners and first time home buyers.  Semonin Realtors has a very solid recommendation for your next mortgage company.  HomeServices Lending is our preferred mortgage company when working with buyers.  Click here for more information.

Did you know the definition of a first time home buyer does not always mean the very first time you bought a home?  For the 2008/2009 tax credits, if you have not owned a home in 3 years then you are considered a first time home buyer.

The Benefits of Equity
Equity is the difference between what your home is worth and what you still owe on it.  When you sell your home this equity can be used as a down payment on a new home.  If you don't sell, this same equity can be used as collateral for a home equity loan.  You can use a home equity loan to finance home improvements, college tuition, or a new car.

Real estate is also a great way to keep a hedge against inflation. While some homes do appreciate in value more quickly than others, real estate usually keeps pace with inflation.  (Your real estate agent can provide you with the housing appreciation rates in the areas in which you're interested in buying.)

That Wonderful Thing Called A Tax Break
As a homeowner, when filing your taxes you can deduct the interest portion of your monthly payment and that can mean BIG savings. You can deduct your property taxes, too!  So look at what your monthly mortgage payment will actually be, taking your tax breaks into consideration. You may find out it's about the same as or sometimes even less than a rent payment!

Pre-Qualification vs. Pre-Approval
Pre-qualification is just a rough estimate of how much you could afford. But with a pre-approval, it's just that: getting your mortgage approved prior to going out and looking for a new home.