Step 1: Determine What You Can Comfortably Afford
Before touring model homes or comparing floorplans, take time to understand your complete financial picture.
Consider:
- Your monthly household income
- Your regular expenses
- Existing debts and financial commitments
- Your savings for a down payment
- Your savings goals and emergency fund
- Estimated monthly homeownership costs
- One-time purchasing, closing and moving expenses
Many buyers focus on the purchase price, but affordability is about the total cost of owning a home. Your mortgage payment is only one part of that cost. A comfortable budget should leave room for property taxes, utilities, insurance, maintenance and everyday life. It should also allow you to continue working toward your other financial goals.
Helpful Tip
A mortgage pre-approval can provide an early estimate of how much a lender may be prepared to lend based on the information reviewed.
What Mortgage Pre-Approval Can Tell You
It may help you understand:
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An estimated mortgage amount you may qualify for
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Potential monthly mortgage payments
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How your available down payment may affect your home search
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How different interest rates could affect affordability
A pre-approval is a useful planning tool, but it is not final mortgage approval. Your finances and the property will still need to meet the lender’s requirements.
Just as importantly, a pre-approval does not decide what feels comfortable for your lifestyle. Your spending decision should reflect your budget, financial goals and comfort level, not only the amount you may qualify to borrow.
Connect With Our Preferred Lenders
Mattamy Homes partners with a trusted network of preferred lenders to help make the financing process smoother and more straightforward. Our preferred lenders may offer competitive rates, special programs or rate guarantees that are available exclusively to Mattamy homebuyers from time to time. Speaking with a preferred lender can help you better understand your options and find a financing solution that fits your needs.