Home Buying in the Bahamas

By Mike Lightbourn

Thinking about buying your first place? Then fasten your seatbelt. House hunting is exciting, but it can also be exhausting and a little scary.

That's because finding a home you love at a price you can afford may be easier said than done.

One of the most frustrating experiences is falling for a home, only to learn you can't afford it.

This is why it's important to pre-qualify for a loan before you start looking at homes in the Bahamas or elsewhere. Here's what to do:

Make a list of all your monthly expenses, excluding rent. This would include payments you're making on vehicles, college loans, credit card payments and health insurance, along with grocery costs and other living expenses.

Don't forget any once a year expenses, like insurance payments or holidays.

Now subtract this total from your take-home pay and you'll have a pretty good idea how much you can spend on a Bahamas
home each month.

Don't assume the bank will lend based on your own calculations. There are other things to consider, such as the down payment and closing costs.

So make sure you visit the bank before lusting over something you may not be able to afford.

The last thing you want to do is put yourself in the precarious position of overextending yourself financially. And you don't want to be disappointed with what you actually can afford.

It's possible you won't be able to afford a home. In this case, the bank prequalification process will show you how much you need to reduce your monthly expenditure by or increase your income before you start house hunting.

(Mike Lightbourn is president of Coldwell Banker Lightbourn Realty)

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