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BUYERS TIPS
GETTING STARTED
HOW DO I KNOW IF I'M READY TO BUY A HOME?
You can find out by asking yourself some questions:
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Do I
have a steady source of income (usually a job)? Have I been
employed on a regular basis for the last 2-3 years? Is my current
income reliable? |
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Do I
have a good record of paying my bills? |
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Do I
have few outstanding long-term debts, like car payments?
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Do I
have money saved for a down payment? |
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Do I
have the ability to pay a mortgage every month, plus additional
costs? |
If you can answer "yes" to these questions, you are probably ready to
buy your own home.
HOW DO I BEGIN THE PROCESS OF BUYING A HOME? Start by
thinking about your situation. Are you ready to buy a home? How much
can you afford in a monthly mortgage payment How much space do
you need? What areas of town do you like?
After you answer these questions, make a "To Do" list and start doing
casual research. Talk to friends and family, drive through
neighborhoods, and look in the "Homes" section of the newspaper.
HOW DOES THE LENDER DECIDE THE MAXIMUM LOAN AMOUNT THAT CAN
AFFORD? The lender considers your debt-to-income ratio, which
is a comparison of your gross (pre-tax) income to housing and
non-housing expenses. Non-housing expenses include such long-term debts
as car or student loan payments, alimony, or child support.
According to the FHA, monthly mortgage payments should be no more than
29% of gross income, while the mortgage payment, combined with
non-housing expenses, 4 should total no more than 41% of income. The
lender also considers cash available for down payment and closing
costs, credit history, etc. when determining your maximum loan amount.
CONTACT US WE CAN
HELP YOU GET STARTED BUYING YOUR NEW HOME TODAY!
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