|
If you'd like to buy a house then you can call me or please fill in this form and I will contact you. |
|
 When I hear a buyer say that their budget is $XXX,000, it makes me feel that they need to adjust their perspective. Today what is far more important than purchase price is the monthly payment. With the drastic drop in mortgage rates, a buyer can afford to buy more house. Consider:
1. Houses haven't been this affordable for a long time - mortgage rates haven't been cheaper since at least 1972
2. At today's rates of around 5% you can afford a lot more house than you could have bought even 2 years ago when rates were at 6.34%
A Bank will base your ability to qualify for a mortgage based in part on your income and expenses. So for example in 2007 mortgage rates were 6.34%. If your income didn't change between 2007 and 2009 and you had a $300,000 mortgage when rates were 6.34% then your monthly payment on a 30 year fixed loan would be: $1864.75 pm.
However now that rates are around 5%, a $300,000 mortgage would only be: $1610.46 pm
Obviously the monthly payment is now less. Another important way of looking at it is that the Bank said that you could afford a monthly payment of $1864.75 ($300,000 at 6.34% in 2007). However now that today's rates are 5%, that same dollar amount would be the monthly payment on a loan of $347,000. That's a 16% increase in the size of the mortgage that you are able to borrow.(Which probably means at least 16% more house :)
Given the significant changes in mortgage rates instead of saying "My budget is $XXX,000", it would be better to say "I would like to pay $X,XXX per month". |
In today's market it is more important than ever to prepare when you are thinking of buying a home. If you already own a home then it makes sense to get your home on the market before starting to look for a new home as there is a lot of housing inventory. It's probably going to take longer to sell your home than finding a new one.
Secondly a lot more documentation is required by the banks and the government before a bank is going to make a loan. You're going to need to gather the following information:
* Social Security Number
* Gross income amount, including secondary income sources, if applicable
* Asset information, including the value of your banking, investment, and other accounts
* Current expenses, including housing, credit card and loan payments, child support, and other obligations
* Previous address if you've been in your current residence for less than two years
* Name and address of your employer, and of your previous employer if you've been at your current job for less than two years
* Estimated purchase price (if you are purchasing a home)
* Estimated property value (if you are refinancing a home)
* Loan amount (if you are refinancing a home)
* Estimated down payment amount (if you are purchasing a home)
With the information in hand, it will make the mortgage application process a lot easier and faster.
|
|
|
What school district am I in? |
 |
 |
 |
You can type the address of a house that you're thinking of buying into this website to find out what school district you're in:
School District |
|
|
|
|
|
