Tampa First Time Buyer - What's The Payment?

By
Mortgage and Lending with Your Tampa Bay Mortgage Source

When I take an application from a new home buyer, I always ask..."What is your comfort payment, what payment range are you trying to target?"  I think it's a bit suspicious when first time home buyers give a payment that is unrealistic with the price range.  Now, I have to say that when I think "mortgage payment", I am including escrows...after all, these do have to be paid at some point.  It takes much education to get this same idea through to buyers.   

So where is the disconnect in "What's the mortgage payment?"...

When buyers are looking at homes, many time they use websites that offer "mortgage calculators" to calculate their mortgage payment.  What I have a problem with are the "assumptions"...so the calculator assume that Mr. Buyer has a 720 credit score and is putting 10% down...don't we all wish!

Buyers come to me very confused when we sit down to talk about their mortgage payment.  I spend a lot of time explaining what the TOTAL PAYMENT is.  (Your housing expense is not just that nice number the online mortgage calculator give you!)

For budgeting purpose, you must take into consideration the following when calculating housing expense:

CalculatorPrinciple and Interest Payment on the Loan (based on specific credit, downpayment)

Tax Escrow or Yearly Tax Payment

Home Owners Insurance Escrow or Yearly Home Owners Insurace Premium

Flood Insurance Premium (if required)

Home Owners Association Fees (if required)

 

My message to our local Tampa Bay homebuyers is "Talk to a Professional, know what your total home payments will look like, not just what you get from the calculator!"

**As a local Tampa Bay mortgage professional, I offer a FREE Mortgage PreQualifcation in order to help buyers understand what they can afford for their budget!**

 

Comments (7)

Gary Miljour
American Financial Network, Inc. NMLS#207208 - Southern Pines, NC
Mortgage Originator NMLS Licensed in AZ and NC

Good point to make,

I run into the same issues when I approve buyers.  On top of that, they get really confused when they here about the 1% option arm loans. 

 

 

Mar 28, 2007 01:48 PM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
Thanks Gary!  Don't get me started on those Option Arms...grrr!  I set aside specific time in my consultation for re-explaining mortgage interest rates and mortgage programs. 
Mar 28, 2007 01:52 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
I really like your approach.   I find that mortgage calculators can be very misleading.  Here in NH we have very high property taxes (we don't have an income tax) and often calculators grossly underestimate this cost.  I really like buyers to talk to a mortgage professional that will hellp them through the process and assess what their true "comfort level" is.  It is a not a good use of anyone's time to look at homes that the buyer cannot afford or does not meet their budgetary goals.
Mar 28, 2007 01:55 PM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
Thanks for the comment Joan!  It sounds like you can really relate!  The more of us out there on our "soap box" educating buyers, the better for our clients to stay out of the subprime mortgage funk!
Mar 28, 2007 01:58 PM
Michael Delp
Mortgage Pro - Telford, PA
The key word there is education. Most buyers don't understand the process and are easily misled unless they deal with a reputable lender. let's keep them educated.
Mar 29, 2007 02:41 AM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes
Leah, I can attest to the fact that you do a gret job educating your homebuyers and them working with them to get into a home that they can actually afford. For anyone looking for a mortgage professional - you can't go wrong with Leah.  
Apr 02, 2007 06:02 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Agent
You've settled to the bottom of my "subscribed to" list.  Come back!  Where have you been, what are you doing?
Nov 04, 2007 10:18 PM