Article 3 I Want To Buy A House Now What
Dated: September 30 2020
Many first-time buyers are unsure about some of the financial aspects involved in buying a home, and you may have many questions swirling in your head. How much can I afford? Do I need a large down payment? What type of loan is best suited to my situation?
Your home price range will be determined by your income, credit history, the cash you have for a down payment, closing costs, and the amount of debt you already have. The financial rule of thumb is: your total monthly debt payments (which will include your new monthly mortgage, revolving credit accounts, car loans, student loans, etc..) shouldn’t be more than about 36 percent of your gross monthly income. Most experts say that your monthly housing expense, including taxes and insurance, should not exceed about 28 percent of your gross monthly income.
Naturally, every situation is different, and each lender has different rules about working with buyers. A number of choices within your control can affect your monthly payment as well. For example, you might choose an adjustable rate loan, which has a lower initial payment than a fixed rate program. Similarly, a larger down payment may lower your monthly payment. You can also buy down your interest rate up front to lower your monthly payment amount. I suggest all these options are discussed with your lender so they can guide you on the best loan to choose for your goals.
If you’d like more information about the price range of homes you can afford, please call or email. I can help you get the mortgage information you need.
If you have more questions about mortgages, buying or selling a home or any other real estate related questions, please feel free to call or email me.
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