Home In Maryland, DC
can you afford?
How Much Home Can You Afford?
An Easy Guide. . .
buyers are often clue-less about the financial aspects of buying a
home, and if you are considering taking advantage of the present Real
Estate situation, you may have many questions unanswered. How much can
I afford? Do I need a large down payment?
What are my payments going to be? What interest rate? What is interest
begin with, if you are a first time home buyer, your home price range
will be determined by your income, credit history, the cash you have
for a down payment & closing costs.
debt also plays a major role. How much you owe vs how much you make
will determine if you are credit worthy or a credit "taker".
you make an application with a loan officer, they will pull your credit
and the amount how much you earn will be also compared to how
much you owe. . this will determine how much the bank $$$ allows you to
try this way. .remember this is for GROSS INCOME
financial rule of thumb is as follows.. . . your total monthly debt,
which will include your monthly mortgage, should’t be more
than about 35 to 38% percent of your gross monthly income.
experts agree with the above ratios and you more likely will not be
able to get a loan. .if you are hovering around the 40% plus
Math. . If you make GROSS $1,000 per month.
monthly total debt should not be no more than $380 per month..
just $380 per month. .your house will be worth somewhere around below
$50,000 at today's rates.
live in the Washington
DC area including Maryland and Virginia
. .a $50,000 house
is like the loch ness monster. . . Some claim they have seen it. .but I
missed. From time to time a picture will emerge of a $50,000 home.
.usually is in black & white and kind of fuzzy.
back to afford ability, naturally every situation is different, and
each lender has different rules about working with buyers. This will
control exactly how much a lender is willing to lend to
best bet is to surround yourself with professionals and start by
finding out how much home you can afford and then. . . .ONLY
THEN..start looking for your dream house.
please don't ask me to show you $50,000 homes walking distance to the White House
or Georgetown. . unless you supply the bodyguard.
For Sale in Maryland, DC and Virginia Here
of FORECLOSURES for MD,DC and VA
Herboso & Associates