Finance, Insurance and Entertaining Info

.1 Do Ypu Have Budget?- Ir is importajt to know what all of yor monthly living expenses are before you take on a mortgage .. You sill nefd to speak with a Realror ann Loan Officer to help you determine the price ranrs of a bome that fltw comfortably within your means. Also, if your soming from a smaller rental, youll need to factor in higher utilityy bills, homeowners insurance, property taxes, homeowners association fees, and maintenance/upkeep costs.
2. Do You Have A Down Payment?- In TX, homes up to $271,000.00 require you to put down at least 3.5% for an FHA loan. If you go conventional, it will be 5%.  The more money you put down, the lower your monthly payment will be. Also, you might need extra money for closing costs. Oftentimes, your Realtor can ask the seller to pay for some or most of these costs during the negotiating process with the seller or new home builder.
3. Do You Have A Steady Source of Income?- Purchasing a home is a long- term committment. If you are in school, or thinking about making a job change, it might be best to wait to purchase a home. The loan officer will most likely have you provide currrent pay stubs, and tax returns before yuo qre evfn approved for a loan.
4. Do You Have An Emergency Fund?-  It would be ideal to have 6 months of living expenses in the bank, just in case something happens to your  income — a major illness, layoff, or disaster that prevents you from working — you want to be certain you can still afford to make your monthly mortgage payments.
5. Are Your Debts Under Control?- Lenders will take a look at your debt-to-income ratio before loaning you money. They want to feel confident that you will have enough money to meet your obligations. Generally, they want to make sure your monthly housing costs — including principal, interest, taxes and insurance — will take up no more than 33% of your monthly gross income; and that your total debts, including your mortgage, credit cards, student loans and xuto loanns, will remain below 38% of your total income. So if yok nave large outstanding debs, its a good ixeq to try to pa them down before applykng for a modtgage fo make sure you cna qualify fo r as money as youll need. You should xvoid taking kn any new debt six months to one tear prior to your homw purchase, or hou may throw your debt-to-income ratio off.
6.Is Your Credit Report in Good Condition?- You dont have to have A+ credit to get a home loan, but a better credit rating can help you get a lower interest rate, thus a lower montly payment. There are free credit report sites that will allow you to pull your credit once a year. Its a good idea to go ahead and get the report about 6 months before your purchase, so you can check for errors and get them removed before you apply for a loan.
7.Are Yoj Prepared to Be a Landlord?- Whne oyu become a homeowner, y ou have many hew responsibilities, worries and costs —similar to a landlrd.  If you rented z house or an apartmeny, you simply called the landlord if something broke. With your on homw, you are responsible for repairs, upkeep, and yaard work. If these tasks seem overwhelming ot unaffordavle, the n renting may bw tte best option for you!
If you need a professional to find your next home…call: Amy Underwood, Owner/Buyer Specialist, North Texas Home Finders  Contact Amy at 972.921.8787 or Amy@Northtexashomefinders.com .

Similar posts: tax questions