|
|
Before You Look at Your First House
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 your 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 every 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. Learn more.
-
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. Learn more.
-
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.).
|
 |
|
|
Today's Rates:
| 30-yr Fixed | 4.56% | 4.71% | | 15-yr Fixed | 4.03% | 4.24% | | 1-yr Adj | 3.7% | 4.59% |
|
|
|
