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Abe Matar's Advice

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Abe Matar wrote:

What Should A Buyer Do First Thing Out of The Gate

Response
It is critical to make sure that you know your credit score and how much you can afford. Typically, a mortgage payment is made up of 4 items:1. P - Principal2. I  - Interest3. T - Property Tax4. I - InsuranceWhen you talk to lenders to get pre-approved, they typically want to see 35%-40% DTI (Debt to income ratio), and some lenders push it to 45%.   So if you make $10,000 a month gross income, your combined monthly debt can't exceed at best case scenario $4,500.  This $4,500 will include PITI for the home you are planning to buy as well as any car payment, credit card payments, etc... So it is very important to understand this, so you do not go by a new car before getting pre-approved as it will lower the amount of loan you can get on a house.Also, the Interest rate affects the payment.  So the better your credit score, the lower the interest rate and lower your payment.  There are many companies out there that can help you clean up your credit and increase your credit score so you can get the best deal on a rate.After you get pre-approved and you know what you can afford, concentrate on the areas you are interested in and work with a Realtor that can assist you with all aspects of the home search.  There are many deal that happen off of the MLS, so working with a good agent is very important.  Happy Shopping!!!Abe
February 10 2011
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