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Answers (4)
- Carl Ashton, "Carl Ashton"
- Contributions:86
I reccomend a prequal for anyone shopping for a home its like having a blank check at your disposal.
As far as the calculators go you are correct every loan and deal is different to get exact costs they must be tailored to your situation.
Credit may be improved with a rapid rescore easily, reports only cost you a point off and can be eliminated easily, to see the real picture you will need a mortgage score as they are different than the score you see on the big three reports.
If you have any more questions I can be contacted thru zillow.
As far as the calculators go you are correct every loan and deal is different to get exact costs they must be tailored to your situation.
Credit may be improved with a rapid rescore easily, reports only cost you a point off and can be eliminated easily, to see the real picture you will need a mortgage score as they are different than the score you see on the big three reports.
If you have any more questions I can be contacted thru zillow.
- Dan, "the_country_hick"
- Contributions:4697
Mark, " if you are paying $1,000 in rent and saving $800 a month it would seem reasonably to have about a $1,600 mortgage payment."
I would disagree. Only having $200 a month left over after rent (to the bank for the money) is asking for problems. You are not leaving much of a cushion for financial emergencies. People need to save money every month for house repairs. If the roof leaks they should be able to afford to pay for a new roof. They need to save for car repairs. They need to save for a replacement car. They need to save for retirement. They need to save for things like winter heat and summer air conditioning bills. There is a lot more to save money for than just a house. Perhaps even the kids college fund.
Did you include property taxes, insurance, electricity, HOA fees, refuse disposal, along with shoes and clothes in your mortgage payment? If not the monthly expense could be above the monthly income.
Beyond that, with what we are seeing happen to prices the coming inflation could be high enough that extra $200 a month is not enough to cover the necessities any longer. If you do not believe me think of 2 cars going to work. After a week each one now takes over $50 to refill. It was $30 not that long ago. What if gas goes to $5 or $6 a gallon? That is not looking at even more expensive food or other things.
I would disagree. Only having $200 a month left over after rent (to the bank for the money) is asking for problems. You are not leaving much of a cushion for financial emergencies. People need to save money every month for house repairs. If the roof leaks they should be able to afford to pay for a new roof. They need to save for car repairs. They need to save for a replacement car. They need to save for retirement. They need to save for things like winter heat and summer air conditioning bills. There is a lot more to save money for than just a house. Perhaps even the kids college fund.
Did you include property taxes, insurance, electricity, HOA fees, refuse disposal, along with shoes and clothes in your mortgage payment? If not the monthly expense could be above the monthly income.
Beyond that, with what we are seeing happen to prices the coming inflation could be high enough that extra $200 a month is not enough to cover the necessities any longer. If you do not believe me think of 2 cars going to work. After a week each one now takes over $50 to refill. It was $30 not that long ago. What if gas goes to $5 or $6 a gallon? That is not looking at even more expensive food or other things.
- Mark Nehs, Wisconsin, "WI Mortgage Lender"
- Contributions:250
You determine how much you can afford. What fits in your budget? How much are you paying now? How much are you saving?
A segment from a recent blog post of mine "For example, if you are paying $1,000 in rent and saving $800 a month it would seem reasonably to have about a $1,600 mortgage payment. On the other hand, if you are paying $500 in rent and have not been able to save for a down payment this is just a foreclosure waiting to happen. Over the last couple of years I have definitely noticed a difference in not trying to buy more house then one can afford but I still see it. If this is the case, you should "act" like you have a $1,000 mortgage payment for 6 months and see if you can save that amount and if you really want too."
Click here for the rest of the blog post
Get with a mortgage lender that you trust. Agreed the mortgage calculators usually don't give the whole picture.
A segment from a recent blog post of mine "For example, if you are paying $1,000 in rent and saving $800 a month it would seem reasonably to have about a $1,600 mortgage payment. On the other hand, if you are paying $500 in rent and have not been able to save for a down payment this is just a foreclosure waiting to happen. Over the last couple of years I have definitely noticed a difference in not trying to buy more house then one can afford but I still see it. If this is the case, you should "act" like you have a $1,000 mortgage payment for 6 months and see if you can save that amount and if you really want too."
Click here for the rest of the blog post
Get with a mortgage lender that you trust. Agreed the mortgage calculators usually don't give the whole picture.
- Dan, "the_country_hick"
- Contributions:4697
How much you can afford and how much a lender will allow you to borrow can be very different. The lender could allow you more or less than you can really afford to pay. A lender does not see how you live or what you spend on your normal lifestyle.
"How to determine what you can safely afford to pay towards your monthly mortgage payment. Lenders may give a different number. "
The general down payment formula follows.
USDA (rural) and V.A. (veteran only) are 0% down.
FHA is 3.5% down.
Conventional can be a lot higher (I see from 5% to 20+% mentioned) and varies by institution.
Closing costs mean more money will be needed when buying.
Do not forget that you should also have more money in your bank account to cover the dreaded "what if's". What if you buy and the next day your car loses a transmission? What if the week after you buy 3 windows get broken? What if a job layoff happens? What if the roof leaks and you have to pay to fix it? There are many more what if's that if they happen could cost a lot of money to fix. Being financially prepared for them makes sense instead of being to broke to do anything for a few months after buying a house.
Below are some blogs you may find helpful.
"How do I get a down payment to buy a house? The ideas below worked well for me. They could help you also."
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."
"Why rent if you could buy for less money? Valid reasons inside."
If those were helpful look at my zillow profile for more blogs related to buying a house.
"How to determine what you can safely afford to pay towards your monthly mortgage payment. Lenders may give a different number. "
The general down payment formula follows.
USDA (rural) and V.A. (veteran only) are 0% down.
FHA is 3.5% down.
Conventional can be a lot higher (I see from 5% to 20+% mentioned) and varies by institution.
Closing costs mean more money will be needed when buying.
Do not forget that you should also have more money in your bank account to cover the dreaded "what if's". What if you buy and the next day your car loses a transmission? What if the week after you buy 3 windows get broken? What if a job layoff happens? What if the roof leaks and you have to pay to fix it? There are many more what if's that if they happen could cost a lot of money to fix. Being financially prepared for them makes sense instead of being to broke to do anything for a few months after buying a house.
Below are some blogs you may find helpful.
"How do I get a down payment to buy a house? The ideas below worked well for me. They could help you also."
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."
"Why rent if you could buy for less money? Valid reasons inside."
If those were helpful look at my zillow profile for more blogs related to buying a house.
How much to save for downpayment and closing?
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