Financing for your first home

Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talking with a lender and getting pre-approved for a loan puts you in a stronger negotiating position with sellers.

As a rule, your monthly housing costs should not exceed 28% of your monthly pre-tax income. These costs include the mortgage payment, real estate taxes, and insurance. If you have long-term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA loans, are more flexible with these basic guidelines.

Depending on which type of mortgage you select, you can consider houses in various price ranges. An adjustable-rate mortgage will usually enable you to qualify for a higher loan amount. Your real estate agent can help you make the basic calculations. Remember that buying at the top end of your price range gives you more time to outgrow your home, and can save you money over the long term.

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Help someone avoid foreclosure.

Many people have the impression that most real estate agents only care about themselves and their commissions. I'm here to help you avoid foreclosure if possible. For example, if you are facing a foreclosure sale, you can ask me about the "ask for the note strategy" to delay or stop the foreclosure. I can also refer you to an organization such as NACA.net. NACA.net who does forensic loan audits to determine if the lender violated any RESPA or other requirements. If the lender did so, then you have more leverage to work out a loan modification, a short sale, or some other solution.

Give me a call today. I can help.