Are you ready to purchase a home? Home ownership not only means you can decorate your house how you want it to look, but it also means maintaining and repairing your home while you own it. On top of monthly payments, you'll also need to take care of your lawn, maintain appliances, repaint the exterior of your home, and more. But with these added responsibilities comes a rewarding experience!
What can you afford? It's important to have a realistic idea of what sort of home you can afford, especially on a monthly basis. Having a big monthly mortgage payment may get you a bigger house, but sacrificing most of your monthly income can quickly dampen the joy of your new home. It's much better to buy a simpler home now and save up for your future "dream home".
What's your debt-to-income ratio? Your debt-to-income ratio is something that lenders seriously consider when deciding on giving you a loan. The exact percentage may differ depending on the lender, but there are a couple of percentages to aim for. For a front-end ratio (aka "housing ratio"), your housing payment shouldn't be more than 30% of your income before taxes. For a back-end ratio, it shouldn't be more than 38% of your income (this includes car loan, student loan, credit card, and housing payments). Your debt-to-income ratio could determine where you can afford to live. For example, $250,000 can buy much more house in a rural area than in a more urban area.
What are your wants vs needs? Do you want to take care of your lawn or would you prefer to hire someone else to do it? Would you like to live in a community with rules about garbage cans, recreational vehicle visibility, paint colors, and more, or would you rather be able to do what you like on your property? Knowing your answers to questions like these will help you narrow down your search for the perfect home for you and your family.
We're Here to Serve You!
Our team is here to serve you and help you accomplish your goals. We'll help keep you focused on what you're looking for and can afford from start to finish.
You need a good agent who will work hard for you. Our team is dedicated to helping you find the right home at the best price. We want you to find the home that will make you and your family happy and safe. When you hire us to help you buy your first home, we want to know what you want and how much you can afford. Then we'll find a way to merge these two priorities and find a residence that you'll enjoy owning. Work with the right lender. Working with the right lender is crucial in the home buying process. The right lender is going to work with you in finding the right loan program for your budget and needs. The right lender will help guide you through the mortgage process and work with you throughout the process by communicating and educating. We highly recommend working with our lending partner Lisa Meyer.