Posts tagged ‘how to buy a home’

March 25, 2013

10 Tips to Improve Your Credit Score

In recent years lenders have made it increasingly difficult to obtain credit – so whether you are applying for a mortgage, loan, credit card, or even a mobile contract, your credit score will play a key part in determining if you will be accepted or not.

10-tips-to-improve-your-credit-card-score

[Info-graphic provided by MoneySuperMarket.com]

Find out more about a mortgage quote from one of many programs so that your mortgage is custimized to fit your needs. Our knowledgeable mortgage consultants will work with you every step of the way to navigate today’s mortgage environment and get you to the closing table.

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September 20, 2012

Are You Ready to Buy?

Buying a home, whether it is your first, second, third, or last is a big decision. Doing a little homework before you buy can make this decision a smooth and easy one. Here are some things to think about before you buy.

1) CHECK YOUR OWN CREDIT. Most homebuyers will need to obtain a mortgage to purchase a home. Make this process a little easier; start to clean up your credit a few months before you apply for a loan. Obtain a copy of your own credit report and check it for accuracy; resolve any problems you discover.

2) GET PRE-APPROVED FOR YOUR MORTGAGE. Getting pre-approved will give you a price range for your home search. It will also put you in a better bargaining position when it comes time to write an agreement on the home of your choice.

3) HIRE A PROFESSIONAL. Finding the right real estate agent means finding one who will listen to you and help you find the home that best fits your needs. You may be able to find a lot of information on the internet yourself, but a professional can help you sort through it and easily guide you through every step of the buying process.

4) MAKE SURE YOU ARE READY FOR THIS COMMITMENT. If you don’t think you’ll be content in the same home for very long, buying may not be the right choice for you. Selling your home too soon may cause you to lose money.

5) LOOK FOR GOOD SCHOOLS. Even though you may not have children, it is still in your best interest to buy in an area with good schools. This could have an impact on resale value when you decide you are ready to make another move. A good school district will help increase the value of your home. http://GreatSchools.org is a good resource.

6) STAY IN YOUR BUDGET. Carefully consider all your debt and expenses versus your income before jumping into this purchase. Be 100% certain you can afford it.

7) BE A SMART BIDDER. Your real estate agent will be important in this step of the buying process. Make sure any offer you put on a home is in-line with other home sales in that area. Your agent will be able to easily access the past few months’ home sales and verify this information.

8) GET INSPECTIONS. Many lenders will require certain inspections before getting a loan approval. This is in your best interest. Inspections are a good way to insure that the home you’re buying is worth the price you are paying.

Buying a home is an exciting journey, begin yours today!

December 15, 2011

How Much House Can You Afford?

The typical homebuyer has been browsing through properties online and driving around looking for yard signs.  This is a great start since it is important to get an idea of what you are looking for, however, it is even more important to know how much you can afford to spend.  Follow these steps to get a basic idea of what monthly mortgage payment will work for you: 

  1. Allowable Monthly Debt Payments

Although it varies, many lenders typically prefer that your monthly debt and housing costs are less than 28% of your gross monthly income.  Even if your debts are higher than 28% of your income, that doesn’t mean you can’t get a mortgage, there are financing programs that help make
homeownership a reality for people from various financial backgrounds.

            $5,500    Gross Monthly Income*
        x        .28    Debt-to-income ratio
       =   $1,540   Allowable Monthly Debt Payment 

*You and your spouse’s total income before taxes and other expenses 

  1. Total Monthly Debt Expenses

Add together your regular monthly debt payments: car payments, student loans, required minimum credit card payment, and any others. 

            $300   Monthly Car Payment
       +   $150   Monthly Tuition Payments
       +   $90    Other Monthly Debt Payments
       =  $540   Total Monthly Debt Expenses 

  1. Maximum Mortgage Payment

Subtract your monthly debt expenses from your allowable monthly debt payment in order to find your maximum mortgage payment.

            $1,540    Allowable Monthly Debt Payment
         -   $540      Total Monthly Debt Expenses
        =   $1,000    Maximum Mortgage Payment 

Keep in mind that your maximum mortgage payment should include mortgage insurance, homeowner’s insurance, and property taxes. 

If you have questions or need help obtaining a mortgage, please don’t hesitate to contact one of our loan officers at Homesale Lending

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