Final answer:
Mischa needs to find a lender to get pre-approved for a mortgage, which will determine how much she can spend on a house. She should consider a 20% down payment but may opt for lower down payment programs at the cost of added mortgage insurance. Additionally, assessing mortgage interest rates versus inflation and weighing the pros and cons of buying vs. renting are important steps.
Step-by-step explanation:
Mischa wants to buy a home and is currently in the process of understanding what she needs to do next. After researching the housing market, Mischa now needs to find a lender to become pre-approved for a mortgage. By getting pre-approved, she will have a clear idea of how much money she can spend on a house, which is crucial for making informed decisions about which properties she can afford.
A mortgage is essentially a line of credit tailored for purchasing a home, and securing one requires demonstrating to the lender that you have the financial stability to make regular payments. This often involves making a down payment, which is typically 20% of the home's purchase price. Plus, it is important to remember that there are options for lower down payments, but they can come with additional costs like mortgage insurance.
As part of the decision-making process, Mischa should also consider the pros and cons of buying vs. renting a home and decide what is best for her situation. Understanding mortgage interest rates and how they compare to inflation rates can be helpful as well, since this impacts the affordability and cost-effectiveness of taking a mortgage loan.