First things first, you need to determine just how much home you can afford.
In general, you can afford to buy a home equal in price to three times your gross annual income. More precisely, the price you can afford to pay for a home will depend on six factors:
1. Your income
2. The amount of cash you have available for down payment, closing costs, and cash reserves required by the lender
3. Your outstanding debts
4. Your credit history
5. The type of mortgage you select
6. Current interest rates
The process of buying a home is much easier if you start out by getting pre-approved with your lender for a home loan. This amount will let you know how much home you can buy, and makes you a more credible buyer.
To get a free money-saving eBook entitled, “8 Secrets For Saving Thousands When Finding, Buying And Financing Your Knoxville Home,” send me a blank email. It’s free as part of our consumer service program. Please call with any Knoxville Real Estate questions you may have.
More information about the Knoxville TN Real Estate market including current Knoxville homes for sale is available by visiting the Knoxville Real Estate Web site.
David Hamilton
Ferguson Realtors
865-310-0636 Cell
865-690-1300 Office
800-747-0713 Toll-Free
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