Budget Crucial For Homebuyers Before They Start House Hunting
FORT WORTH (CBSDFW.COM) - The unprecedented real estate market in North Texas quickly caused prices to soar, and currently the average price of a home in DFW is just north of $350,000.
That reality is why realtors like Shana Acquisto the owner and broker of Acquisto Real Estate is reminding home buyers it is crucial for them to figure out their budget right off the bat before trying to go house hunting.
Acquisto offered the rule of thumb on calculating that number saying, "You can generally look at three times your income. Whatever three times your income is, is what your home price should be. If you don't have any debt you can make it 4 times what your income is."
She said homebuyers also have to account for additional costs that come along with a mortgage.
"Things can vary such as taxes, insurance. Things like that," Acquisto said.
Another tip is for buyers to specifically seek out local lenders who know the market and can guide them through figuring out their budget.
She said lenders are legally required to red flag someone who is asking to borrow more money than they can afford to.
Knowing your budget right out of the gates, experts say, will help you avoid heartbreak and headaches down the road.