Ranny, Assuming you are not going to put your condo on the market, call your bank's loan department and ask for a pre-approval letter. The bank will determine an approximate amount of money they will lend you to buy a property. They will also tell you about their different loan programs. You may need 5% of the selling price for a conventional mortgage or 3% for FHA. The bank will need to know your employment status, financials and they will pull your credit score.
I say the amount is approximate because the bank's decision is based on the facts in front of them. For example, if the bank says that you can spend $300,000 then you may only want to spend $280,000. You still have to consider there are other costs involved in buying a property, such as closing costs or maybe doing some repairs to the new property.
Also, the bank doesn't take your lifestyle into consideration. For example, you may be a movie buff and want to see a movie every week. That pleasure could cost you $60 - $80 a month. Or maybe you have an expensive hobby or you belong to a travel club or you are a gourmet cook and mac & cheese for dinner just won't do. We all have monthly expenses that don't show up on our credit report. Only you know what your budget is and what you can truly spend for a mortgage each month. Be honest with yourself.
If you are selling your current property, then the amount you need to borrow will change significantly - if you need to borrow anything at all. Call me and I will do a free Comparative Market Analysis (CMA) on your condo to let you know what you could get for it. There is still prime spring market left and plenty of buyers out there. And if you haven't already found a property in Melrose, I can help you with that too.
Good Luck and I hope to hear from you soon. Susan Barrasso 978-902-0542 any time.

Fri May 9 2008, 06:10