When you decide to buy a home, which of these questions should be answered?

Question

Quizplus · Accepted Answer

All of the above questions should be answered before making the decision to buy a home. Knowing the maximum amount that a bank will lend you helps to determine your budget and narrow down your options. Deciding whether to borrow up to this maximum involves considering your current and future financial situation, including potential changes to income and expenses. Determining how big of a down payment you can afford is important for calculating the total cost of the home and for avoiding private mortgage insurance (PMI), which is typically required for loans with less than a 20% down payment.

When You Decide to Buy a Home, Which of These