Curbed University has provided buyers everywhere with very insightful information to help you gauge how much house you can really afford. Here are our highlights:
• You can’t start the purchasing process with most sellers or real estate brokerages without loan pre-approval, so be prepared. You can get a quick pre-approval form your bank or credit union OR you can be thorough and go directly to your lender. Either way, you’ll need to fill out a loan application and submit supporting documents to prove work history, credit history, total debt, down payment, assets & investments, and residence history. Curbed has provided you with a full list.
• Once pre-approved don’t make any major changes to your credit, debt, or assets before you secure the loan. Tip: Lenders typically re-check your credit within five days of your home purchase closing.
• Two figures to consider: how much you can put down and how much you’re willing to pay a month.
• Standard loans generally require you to put 20% of the purchase as down payment. The less you put down, the more you’ll have to pay monthly with interest.
• Use a mortgage calculator to figure out how much you can responsibly pay each month to help determine your upper limit. Tip: Make sure your mortgage calculator includes down payment, mortgage rate, homeowners insurance mortgage insurance, and property tax.
• Calculate your own tax rate, MLS may be outdated if the house has not been listed in many years.
• Remember, the listing price is not the final price. The low inventory of available housing has been spawning bidding wars that drive up costs. Also keep in mind that an affordable house may need renovations, so these additional costs need to be considered.
The one tip that Curbed forgot to mention is the importance of finding a knowledgeable agent that will guide you through the process of financing, finding and falling in love with your dream home. That’s what our team of property experts do here at Gotham every day. Let us know how we can help you – Info@gothamproperties.net
Still have more questions? Ask away – ask.gotham@gmail.com
For the full article: http://la.curbed.com/archives/2013/03/curbed_university_how_much_house_can_you_really_afford.php
Gotham Corporate Group 