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How To Buy A Home |
Buying a home is exciting. Not knowing what is involved can be a little overwhelming and intimidating.
When you have decided you are ready to look into purchasing a home, consider the following to help guide you on your way:
How Much House Can You Afford?
Evaluate your financial situation as lenders do. Typically your total monthly housing costs (PITI) should not exceed 28% of your gross monthly income. (Or, housing costs plus any outstanding monthly long-term debt should not exceed 36% of gross monthly income.)
After you have done this, determine how much your financial institution is willing to lend you. Know how much you can afford in monthly payments. Lenders factor in sales price and down payment, but place more importance on how much you can handle monthly.
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Buying & Selling Tips
