A 12 STEP GUIDE TO BUYING YOUR HOME - STEP #2

By
Real Estate Sales Representative with BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE

12 Step Guide to Buying Your Home

Step #2 - Figure Out How Much You Can Afford

 

Buying or Selling real estate is probably the largest financial transaction you will make and there is much to think about.  Please browse through the ilinks below so when you are ready to make that leap into home ownership you will be much better informed.

12-Step Guide to Buying Your Home in Mississauga 

Step 2: Figure Out How Much You Can Afford.

Before you start looking for your dream home, let’s find out how big you can dream. Knowing your true budget is the first and most important step in buying a home. Why?

A home is a big purchase.
It’s probably the most expensive thing you’ll ever buy, and there are lots of expenses you might not even know about. Everybody’s total costs are different, but it’s almost guaranteed you won’t have that much money saved up. Hopefully you have enough for a nice down payment. Here’s the reality in detail:

Cost of buying a home =    One time costs (down payment, legal fees, inspection fees, taxes)   

Monthly costs (mortgage, utilities, maintenance, insurance, property taxes)

Yes, you need a mortgage.
Step 9 is practically bursting with tips on how to arrange your mortgage but for now, we just need to figure out how much a bank will lend you.

How much will a bank lend you?
Well that depends on how much you can afford each month. This is determined using two lending principals.

The first lending principle is that your monthly housing cost should not exceed 32% of your gross monthly family income. This principle is known as the Gross Debt Service (GDS) ratio calculation.

The second lending principle used, the Total Debt Service (TDS ) ratio calculation, is that your monthly housing cost and payments on all of your other debts (including loans, credit card and lease payments) should not exceed 40% of your gros

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Mississauga and Streetsville Real Estate


When you choose me to handle your real estate needs, you choose a real estate professional who cares about you and your family, who listens to your needs and who will put your interests first and foremost. I will work together with you, protecting your interests, to achieve your objectives.

I have been uniting families and homes for more than 31 years.. Let me put my 31+ years of knowledge and experience to work for you when selling or buying your next home.

 

Proud recipient of the Platinum award for outstanding serivce with a rating of 100% voted by my clients!!

A great experience starts with a great agent !

Helping You Make The Right Move since 1987. 

Call me at (905) 896-4622 or direct at (416) 717-6331

 www.mississaugarealestateonline.com    gvalvasori@gmail.com            

              

 

No part of this publication, may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, or electronic methods, without the prior written permission of the publisher.  Copyright © 2018  Gloria Valvasori, all rights reserved.

 

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Home Buying
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Rainmaker
3,850,857
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Gloria. First stop, an experienced loan officer who knows what questions to ask. Now you know what you are capable of! Next, what are you comfortable with? Enjoy your day!

Dec 28, 2017 05:04 AM #1
Rainmaker
577,189
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

Good morning Wayne Martin , absollutely.  The very first thiing it get a pre-approval for a mortgage to see how much you can afford to spend... Enjoy your day as well.. I'm staying in today.. it bitterly cold here today.. only 2 degrees F .  Brrrr

Dec 28, 2017 06:27 AM #2
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Rainmaker
577,189

Gloria Valvasori, Accredited Senior Agent

REAL Experience | REAL Commitment | REAL Results!
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