Viewing homes with all the bells and whistles can be a bit intoxicating.  In this new market, more homes are being renovated and some sellers are going all out to create a wow factor for prospective buyers.  Before you get caught up in the glamour of these homes, determine what you can comfortably afford to pay per month and consult with your lender on what that payment equates to in home prices.  Your lender should be able to provide you with a breakdown of your estimated closing costs and monthly payment at various sales prices.  These estimates are merely a guide.  Interest rates can change daily, sometimes several times a day, and every home is assessed differently.  Also, the hazard or homeowner’s insurance amount can vary per insurance provider. 

 If you are payment conscious or would prefer to keep your monthly mortgage payment at or below a certain amount, supply your lender with as much information as possible about the home prior to submitting an offer.  Your lender will need the property’s annual tax amount and homeowner’s insurance amount, if your homeowner’s insurance quote exceeds your lender’s estimate.  Or, if the interest rate on the Initial Fees Worksheet is still the same, replace the property tax amount and homeowner’s insurance quote with your new figures by dividing the annual amount for each by 12.  By doing this, you will have a better idea of your monthly mortgage payment and avoid getting yourself under contract on a home you may not be able to comfortably afford.