The Bergamini Group
Realty Executives Northern Arizona
How Much Home Can You Afford?
The single most important part of buying a house is figuring out how much you can realistically afford to pay. You'll have to take a good look at your budget, debts, credit reports, and credit score. Once you have a good picture of your financial status, start saving as much money as you can for a down payment, closing costs and other extra expenses that come along with buying a house. Extra expenses could include paying for a home inspection (around $300 - $500 depending on where you live) or hiring a moving company after the sale is final.
There are a few basic formulas commonly used by lenders to determine how much of a mortgage you can reasonably afford. These formulas are called qualifying ratios because they estimate the amount of money you should spend on mortgage payments in relation to your income and other expenses. It is important to remember that these ratios may vary from lender to lender and each application is handled on an individual basis, so the guidelines are just that - guidelines.
When you buy a house, you enter into a long-term financial obligation. You fill out papers and sign legal documents based on those papers. It's important that you understand your responsibilities so that you won't be a victim, or a participant, in a fraud.
Don't Be Discouraged
Aside from being US presidents, what else do George Washington, Thomas Jefferson, Abraham Lincoln and Teddy Roosevelt have in common?