Buying a house is a big deal.   It is exciting and yet very stressful.   People buy houses every day and people lose houses every day.  When money is tight the lending establishments will make sure you are investing safely, but when there is a lot of money to be loaned sometimes they allow people to over extend.

 Start by doing some self reflection. The following section will give you the way your lender will figure it, but you have to make some choices. 

WHAT CAN YOU AFFORD?

It is different for everyone but a good rule of thumb is 40% of your income can go to housing.   That includes:  Mortgage, taxes, insurance, maintenance, landscaping and improvements.   Life styles, medical concerns, etc. can affect that percentage. 

  Debt to Income Ratio :

The ratio your lenders will be looking at.   Remember that to the lenders the magic number is .36 or 36 as they may call it, the lower this number the more they like it, the higher your number the more likelihood you will be renting for a while.

Buyer Information

Why You Need a Buyers Agent

How Long Will Home Items Last

Buying A House

Buy First or Sell First

Finance Information

Amortization

Credit Ratings

Down Payment

Where to Go For A Loan

Additional Costs to Consider

Questions to Ask Lender

What Can You Afford

Financing a Home

Selling A Home

Selling a House

Seller Mistakes to Avoid

Preparing Your House to Sell

What Is Your House Worth

Buy First or Sell First

First Figure:  Income (Monthly) that is guaranteed

            Salary (They most generally look at the last several years, if your income isn’t regular they will look at your average monthly income for two years.)

            Overtime (If steady)

            Alimony

            Investments (Stocks, bonds, rental property, etc)

                 (If you make income and don’t show it or have proof you can’t use it)

            Total these:

  Second figure: Expenses (Monthly)

            Rent payments (Yes this will change when you move into your mansion)

            Regular payments (Credit Card, Installment Payments)

            These are regular payments that you owe long term (they don’t include utility bills, etc.

            Total these:

 Divide the Debt (expenses) by your Income

            Example:       You owe $1500.00 a month and make $4000.00 a month.

                                    $1500 divided by $4000 = .375 or 38   (This is above the 36 .)