Shirley Brown, your local Coquitlam REALTOR®

(604) 939-6666

How Much of a New Home Can You Afford?

If you’re thinking of shopping for a new home, one of the first considerations is price range. You want to know what you can reasonably afford.


How do you figure that out?


First of all, you need to determine the initial out-of-pocket costs you will need to cover. There are often more costs associated with purchasing a home than its actual price.


You need to take into account such additional expenses as moving costs, legal fees, and a home inspection, not to mention the costs of prepping your current property for sale.


Experts say you should budget 5-10% above the purchase price for these items. So if you can afford to spend $470K on a new home, you should be shopping in the $425-445K range.


Another factor to consider are the potential proceeds from the sale of your current home. Your REALTOR® can help you determine how much your property will likely sell for in today’s market.


Any existing mortgage will need to be subtracted from that amount to determine how much cash will be left.


Of course, you should speak to a mortgage broker or lender who can compute how much of a mortgage you qualify for. Remember, qualifying for a big mortgage doesn’t necessarily mean you should have one. You also need to consider your personal finances and desired lifestyle – and whether or not having a large mortgage is a good idea for you.


Once you have gathered all of your information, you can add any potential sale proceeds to the amount of mortgage you qualify for, add other sources of cash available for this purpose and subtract 5-10% for initial expenses, and you’ll have an idea of the price range you should be considering.


Finally, it’s important to take the time to decide what kind of home you want. Do you want a large backyard with trees? A quiet, family-oriented neighbourhood? Four bedrooms and a finished basement?


Once you decide what you want most in a new home, it becomes much easier to find one that’s in your price range. 


Need help deciding how much you can afford when shopping for a new home?


Call today. 


Shirley Brown


(604) 671-1060





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Home safety is more than locked doors and alarms 



When it comes to home security, most homeowners think about door locks and alarms. These are, of course, very important. However, there is also a lot you can do around your property to prevent the possibility of a break-in.

 

One important part of home security is outdoor lighting. Your home doesn't need to be lit up like a baseball diamond at night, but your exterior lighting should illuminate your yard enough to be a deterrent to burglars.

 

Some burglars hide around the property and wait for someone to arrive and open the door so they can use that opportunity to force their way into your home.

Security experts suggest that you walk around your property and look for areas where someone could hide, such as behind tall shrubbery like a cedar hedge or behind a tool shed. Make sure these areas are well lit.

 

Pay particular attention to lighting around exterior doors, especially the back door.

 

Home security experts also recommend that exterior lighting be installed with a timed dimmer. The lights can then be set to cast a bright light in the early evening, and then a dimmer light throughout the rest of the night.

 

Lights installed with motion detectors can also be effective in certain areas. The sensors will cause the light to turn on or brighten when someone comes onto that part of your property. Generally, thieves will flee as soon as they see a light turn on.

 

Do you hide a spare key under the front door mat or in a flower pot? No matter how clever you think you are, experienced thieves know all the common hiding places. So, if you need to have a spare key available, put it in a small combination lock box and hide the box. That way, if a burglar finds the box, he still won't be able to open it and access the key.


The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.