Are you ready to buy your own house? Are you tired of renting, or ready to start a family of your own? There are plenty of things to consider, so here are some considerations before contacting a realtor.
First thing is first — check your bank accounts and consider how much you have saved and ready for a down payment on a house.
Lenders like to see down payments of 20 percent ($20,000 on a $100,000 home), but that’s not a requirement for purchasing a home; there are options such as government-backed FHA loans. But keep in mind the less you put down up front the larger your monthly payments will be and you may end up paying private mortgage insurance (PMI).
Also, now is the time to know your credit score and outstanding debts. Lenders will check these for numerous reasons, but the answers could affect interest rates or the amount you can borrow for a home.
An important figure lenders review is your debt-to-income ratio, which is your monthly debts divided by your monthly income. Most lenders don’t want to see this figure higher than 43 percent.
And lastly, know your budget so you know exactly how comfortable you can feel with a monthly mortgage payment.
Once you know where you stand, now the fun part starts — house hunting and finding a professional realtor who can help you find the best house for you!
Contact the Lauren Mingay Team to find your dream house today!