How Much House Can I Afford?

How Much House Can You Afford?When clients come into my office, one of the first things we determine is how much house can they afford.  Knowing this important bit of information is vital in starting a good home search and making sure we find a home for sale in Summerville that they can successfully purchase and secure a mortgage for.  But what if you don’t know how much home you can afford?

The price you can afford to pay for a home will depend on six factors:
1. Gross income
2. The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
3. Your outstanding debts
4. Your credit history
5. The type of mortgage you select
6. Current interest rates

Real Estate for Sale in Summerville, SCAs a general rule, lenders don’t want borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on debts. Part of my job is to help you find a great mortgage lender if you are not already working with someone to help you secure your loan. Read More at  How Much House Can I Afford?

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Five Bad Habits to Kick if You Want to Buy a Summerville Home in 2017

Real Estate for Sale in Summerville, SCWe are one day away from the start of a new year! 2017 is coming and if you want to make it the year that you buy a home in Summerville, here are five bad habits you want to kick!

1.Using Credit Cards Unwisely

They are convenient, easy to use and have a lot of great rewards! What’s the harm with them? Nothing, if you use them wisely. On average, you shouldn’t use more than 30% of your available credit…If you are consistently maxing out your credit, or even using more than 30% it can hurt your credit score and make it much harder to qualify for a mortgage. This will make buying a home in Summerville that much harder.

2.Too Many Credit Cards

Real Estate for Sale in Summerville, SCAs tempting as 10% off your order and more coupons then you would ever want is, opening that fourth credit card can hurt your credit score.  When banks are looking at you as a potential mortgage holder, they see a plethora of credit cards in a negative light. It shows a heavy shopper/spender and it can hurt your score. Even if you never use them, simply opening a card will be recorded and used against you.

3.Missing Credit Card Payments or being Late

We all do it every once in awhile. A holiday gets in the way or we’re busy with work or family, but missing a credit card payment can have a very negative impact on your credit score. Every missed credit card payment impacts your score and that lower credit score turns into a more expensive loan, or worse, a denied mortgage on your home in Summerville.

4.Not Keeping Cash in Your Bank Account

Real Estate for Sale in Summerville, SCWhen you are renting a home, your housing costs stay much more stable, rent and utilities.  Big expenses are covered by your landlord. However, when you are a home owner, you need to have what is called an “emergency fund” that is more than a few hundred dollars. Unexpected things will come up and when disaster hits, you need to be prepared so that you don’t go underwater and are unable to keep up with your mortgage.

5.Switching Jobs

The year before you want to buy a house is not the year to switch jobs or go at it on your own. Mortgage lenders want to see stability and consistency. That translates to a better risk for them.

Please feel free to contact me if you are interested in buying a home in Summervillenew home in Summerville , a historic home in Summerville or selling your Summerville home. Make 2017 the year you become a homeowner!

Real Estate for Sale in Summerville, SC