Your Loan Size and the Price of Houses

By
Real Estate Broker/Owner with MBA Broker Consultants CalBRE Broker #00983670
Your loan size will determine what price of houses you should shop for


The less debt that shows up on your credit report means you will qualify for a higher loan and; therefore, be able to purchase a bigger, better house.  Using your income and your expenses, your lender will calculate the maximum size of a loan for which you will be eligible.  This will give you a good idea of the type of house for which you will be shopping.

Remember that your total monthly housing payment will include your mortgage payment, taxes, and insurance.

If you choose a condominium or planned unit development (PUD) that includes a monthly HOA payment, these fees will increase your housing payment.  Then your mortgage payment will have to be less, which means that you will have to buy a lower priced condominium.
 
HOA fees are part of the payment when you live in a condominium or a PUD (which stands for a planned unit development).  These are also known as common interest developments (CIDs).  They are collected to maintain the private property in the community, such as streets, parks, swimming pool, building exteriors, yards, and other common areas.
 

For example, if your total housing debt allowed is $1,700 per month, and you find a condo that includes HOA dues of $300.00 per month, that only leaves $1,400.00 for your mortgage, taxes, and insurance.

Read more in our book, "Buy Your First Home", http://tinyurl.com/dy2wjx4.

 

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Posted by

Regina P. Brown
Broker, Realtor®, M.B.A., e-Pro, GREEN
California DRE # 00983670
www.CalCoastCountry.com

                

Text copyright © 2011-2018 R.P. Brown, All Rights Reserved

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