First-Time Homebuyer Question for Friday, 1.22.2010

I'm starting a new blog category today here at DesMoinesFirstHome.com -- first-time homebuyer questions!  When people email me to ask a question, I will later post the question and answer here for everyone to benefit from (with names removed, of course, for privacy).

Here's today's question: Hi Mike -- I know our options are very limited but we would really like to get into our OWN home!  I have a few houses that I have been eying but do not know what price range I should be looking for.

My answer: There are really two ways to determine what price range you should be in.  First, what is YOUR comfort level of a monthly payment, should you buy a home?  Then second, my loan officer and I would help you with a very quick preapproval, to make sure that what you're comfortable with, you can be approved for.

You see, mortgage companies determine how much of a home you can buy based on monthly payment, not price.  We then work it backwards from what monthly payment you qualify for to determine what price of home you will qualify for.

Hope that makes sense.

The very best thing you could do now is to fill out the very short form on my webpage, here, and my loan officer and I will get you approved right away!