DON'T MISS A NEW LISTING AGAIN!
FREE AUTOMATED EMAIL UPDATES
In the Bay Area, your first home is likely to be a "starter home". Unless you're independently wealthy, it's unlikely that your first home will be your Dream Home. However, it is a great first step on the path to the home that you ultimately want to own. The general trend line for Bay Area real estate has been steeply rising for decades—in spite of periodic corrections. Please be aware that past results don't guarantee future results. Overall however, getting into a starter home to climb the "property value ladder" is a strategy to consider.
There are many variables that you will want to think about. Here are a few:
Starting down the path to home ownership, you want to know how much you can afford. It's going to be different for each buyer, and for each set of circumstances. Let's take a look at this calculator and get you started. Here are a few ideas for how to fill out the information in the calculator. Realize that it is an estimate and that you can play with the different fields to see various possibilities.
Here's a calculator that will show you the size of loan you can qualify for. The size of the loan can be adjusted by the amount you can afford for the down payment. The objective here is to get you thinking about what you can afford and ways you can afford it. Here are some hints for how you could fill out the answers to this calculator:
At this point, you get an estimation of your monthly payment...and most importantly, you get an estimate of the Tax deductible portion of payment. Multiply that number by the number of months you expect to be in the home in the year and you get an estimate of the amount of your mortgage interest deduction for income tax purposes. Now, let's move on to the actual qualification portion of this calculator. Here's some information on how to enter your data.
I'm sure that you probably learned a few things working with these calculators. It can be really eye-opening. If you'd like to talk about what you learned and discuss your options, feel free to give me a call.