Thursday, April 21, 2011
Welcome to Marco Pontillo Blog about real estate on the North Shore !
It is the spring market, and you want to get into Real Estate, and you are thinking of upgrading, downgrading, investment etc?
Marco Pontillo details the first step in purchasing a property: How much can you afford?
MP Marketing Properties Marco Pontillo STEP 1
The calculation below can give you a general idea of costs associated to home buying :
Cost of home buying = on time costs + monthly costs
Mortgage - amount a bank will lend you is determined by two lending principles:
1) Gross debt service ratio- this lending principle says that your monthly housing costs can not exceed 32% of your gross monthly family income
2) total debt service ration - this lending principle says that your monthly housing cost and payments on all other debts should not exceed 40% of your gross monthly income
With these basic calculations as a point of reference, doing some research and applying them to your situation will give you a idea on how much home purchasing and ownership will actually cost you, and mortgage eligibility.
An important step before looking for your dream home is to know, in advance, the amount of financing that you qualify for. getting a pre approval will set you on the right track.
Set realistic expectation for your dream home!
Thinking of buying or selling with Marco Pontillo, Call me to discuss any real estate interests!
Marco Pontillo : Marketing Properties