Buying Roanoke Real Estate Within Your Means

Summary: When buying real estate in Roanoke you must first determine your financial means and your budget. And then you should buy within those limits.

If you've been watching the news lately, you've probably seen plenty of stories about the number of foreclosed homes in Roanoke right now (and across the country as a whole).

There is a lot of finger-pointing about who is to blame for the "mortgage crisis," as it has been dubbed. Some blame the mortgage companies for being over-aggressive and deceptive with their lending, while others blame the government for looking the other way. Perhaps there is justification for both.

But here's the bottom line. As consumers, we must be smart about buying real estate and taking on a mortgage loan. We must be responsible for our own actions when making purchases, and we must do the proper research to ensure we don't get "burned" in some way.

How does this apply to buying real estate in Roanoke, Virginia? Well, for one thing, you should always go through your due diligence when shopping for a mortgage loan. This means, above all, buying within your means.

Many of the people who have been foreclosed upon bought more home than they could afford. Sure, the teaser rate on that adjustable mortgage loan seemed appealing ... but those rates are temporary. This is an example where the home buyer should do research to find out (A) when the rate is going to adjust, (B) how much higher the mortgage payment may be, and (C) if they could realistically afford the home after the mortgage resets.

But many homeowners in Roanoke and elsewhere did not ask the right kinds of questions in advance, and so (unfortunately) they often wound up as yet another foreclosure statistic.

How to Buy Within Your Means

Start by looking at your net monthly income and your monthly debt (credit card bills, car payments, etc.). Then subtract other monthly expenses as well, such as school, shopping, savings, etc. How much do you have left over for a monthly mortgage payment? Keep that number in mind when shopping for homes.

Use a mortgage calculator (such as the one at the top of our Buyer Info page) to divide an average home price into its monthly mortgage payments. This will give you an idea of how much of a home you can afford, based on the monthly payment. Of course, the monthly payment will partly be determined by the interest rate you get on the loan, which will be determined by your credit history and other factors. But this will give you a good idea of where you stand.

It can be tempting to "buy over our heads" when it comes to real estate. Everyone has felt the temptation to buy that beautiful home that's just a little over the budget. But you have to exercise caution when buying Roanoke real estate ... you have to do the proper research and ask the right questions ... and, above all else, you have to buy within your means.

Good luck with your Roanoke real estate experience! If I can help you in any way, please contact me.