Experienced home buyers know that one of the first-steps in beginning a successful search for a new house is taking a hard, objective look at finances. Determining how much money you can dedicate to the purchase of your new house affects almost every aspect of buying a new home - including how we write the offer, which mortgage programs you will qualify for, shopping for the best mortgage loan and which homes are truly in your price range.
Here are the questions that each
home buyer should ask:
- How much cash is available for a down
payment? The amount you have available for a down
payment will affect what types of loans for which you
can qualify.
- Am I ready to write a check for the earnest
money? Earnest money is a cash deposit made to a
home seller to secure an offer to buy the property.
This amount is often forfeited if the buyer decides to
withdraw his offer.
- How much additional cash will be available to
pay for closing costs? There are certain standard
costs associated with closing the sale of a house.
These fees are split between the buyer and the seller,
as spelled out in the sales contract.
- What is the maximum monthly mortgage payment
that I can afford? Most lenders will use the
28/36 rule to determine the maximum mortgage payment
you can afford.
The 28/36 Rule
No
more than 28% of your gross income can be applied to your
mortgage, real estate taxes and insurance. And no more than
36% of your gross income can be applied to your mortgage
expenses plus your regular debt expenses (car payments, credit
cards, other loans, etc.).
Note: <-- Sponsored by aDiscountRealty.com
 
|
