On the Fence?

Hey everyone,

Ran across this little picture thing, thought it would be nice to share.  Don't bet on rates staying this low forever, nor housing prices to continue to drop! Truth is..even a 10 percent drop in prices is nullified by a 1 percent increase in your rate.

Pretty eye opening.

Happy Thanksgiving!

8 Quick Tips for 1st Time Buyers

Actual Article Link

Sorry for lack of updates, been pretty busy, which is always good news. Here is a quick rundown of the article.

•  Savings. You may already know how much monthly payment you can support (experts recommend no more than 1/3 your monthly income)
• Downpayment options. Do you qualify for downpayment assistance programs? Will you be able to get an FHA loan and pay 3.5 percent down? 
• Check Credit Report.  I suggest the website www.creditkarma.com. I used it, free, and gives you a score. 
• Get Preapproved. It's time to talk to a lender! Let me know if you are interested in talking to a lender, I got two really good ones. No obligation, free, all you need is the time to meet.
• Affordability. The bank may tell you that you can afford a home worth $300,000. This does not mean you want to borrow to your max.
• Housing Criteria. You have a budget, now develop a list of what you need and want. That being said, you buy a house on your why's, not your wants.
• Hire an agent. An agent can help you navigate the entire process from searching, putting in offers, to where to hire an inspector or general contractors.
• Start the search! The MLS is a wonderful place to begin your search. Let me know if you need any help whatsoever doing this!

Have a great week and Thanksgiving if I do update til after then!

How Much House Can You Afford?

Taken From : Bank Vs Budget

Who Decides?

• Your bank or lending institution decides. They will look at your application and based on a predefined set of criteria and decide if you can afford the home. 

What Do They Look for?

• Credit History-The better your credit, the lower your rate. 
• Down Payment-Banks want more money down than they used to so plan for a 10% down payment. Also remember that if you can put at least 20% down, you will avoid private mortgage insurance that costs of approximately $80 per month. Wouldn't you like to have an extra $960 per year? 
• Debt to Income Ratio- The debt to income ratio (DTI) looks at the amount of money you owe on a monthly basis and compares it to the money you make each month. The number is shown as a percentage of your gross income.
• Your Income- If your DTI (debt to income ratio) is 25%, but you only make $10,000 per year, you aren't going to get that home.