Real Estate Information Archive

Blog

Displaying blog entries 1-2 of 2

Tips for Pre-qualifying in Today’s Market

by Masha Halpern

When starting the hunt for your dream home you first must know how much home you can truly afford.  The first step in buying your home is to have a budget and figure out how much you can actually afford. Your real estate agent or mortgage lender can assist you with this in a couple different ways: 

  •  Pre-qualifying process This process will give you a general "estimate" of what you will be able to afford.
  • Pre-approval process This process will allow your lender to review your finances in more detail in order to determine the amount of money they agree to loan you for your home purchase.

Your lender will review your finances and focus on a few main areas such as:

  • Gross monthly income
  • Credit history
  • Amount of outstanding debts
  • Source and amount of money available for down payment and closing costs
  • Interest rates, etc.

All these things put together will help your lender determine two important qualifying ratios.

1. Debt-to-Income Ratio Generally the amount of debt you pay each month should not exceed 36 percent of your gross monthly income

2. Housing Expense Ratio Most lenders will not approve your loan if the mortgage payment exceeds 28 to 33 percent of your gross monthly income

Determining how much you can afford to spend when purchasing a new home is your first step. For more information please feel free to contact me!

 

/kh

Pre-qualifying Tips for Today's Home Buyer

by


How much home can you really afford? The first step in buying a home is to have a budget and figure out how much you can actually afford. Your agent or lender can help you with this in a couple of ways:

 

  •  Pre-qualifying process This process will give you a general "estimate" of what you will be able to afford.

  • Pre-approval process This process will allow your lender to review your finances in more detail in order to determine the amount of money they agree to loan you for your home purchase.

Your lender will review your finances and focus on a few main areas such as:

  • Gross monthly income
  • Credit history
  • Amount of outstanding debts
  • Source and amount of money available for down payment and closing costs
  • Interest rates, etc.

All these things put together will help your lender determine two important qualifying ratios.

  1. Debt-to-Income Ratio Generally the amount of debt you pay each month should not exceed 36 percent of your gross monthly income
  2. Housing Expense Ratio Most lenders will not approve your loan if the mortgage payment exceeds 28 to 33 percent of your gross monthly income

These are the first steps in determining how much you can afford when purchasing a new home. For more mortgage and finance information feel free to contact me.

Displaying blog entries 1-2 of 2

Syndication

Categories

Archives

365 Things To Do In...

Share This Page

Contact Information

Photo of Masha Halpern - Boutique Real Estate Real Estate
Masha Halpern - Boutique Real Estate
Keller Williams Realty
101 Cosgrove Avenue, Suite 200
Chapel Hill NC 27514
Direct 919-951-1780
Toll Free 877-478-4669
Fax: 919-928-9030




Masha Halpern of Keller Williams Realty provides real estate services in the Chapel Hill, Carrboro and Durham, North Carolina area including real estate services for buyer, sellers and those relocating to the surrounding areas of Apex, Bahama,Cary, Efland, Hillsborough, Holly Springs, Mebane, Raleigh, and Wake Forest. Search for homes in Chapel Hill, Carrboro, Durham or the surrounding communities.  Request a market analysis for your North Carolina property.  I list and sell residential real estate, investment property, vacant land, lots for sale in Chapel Hill, Carrboro and Durham, North Carolina area.

Chapel Hill, Carrboro and Durham, North Carolina real estate and homes for sale in North Carolina - Masha Halpern & The Smart Move Team