| When looking into anything new, it is normal | | | | account several factors. Most lenders accept |
| to have questions. Here are some common | | | | a five percent down payment, so you will need |
| questions and answers about real estate to | | | | that up front. What remains after the down |
| help you gain that edge when deciding whether | | | | payment is what you will borrow.You will have |
| buying a home is right for you.Which is | | | | to figure interest, mortgage insurance, an |
| better: renting or buying? | | | | escrow account, and possibly taxes as well. |
| | | | All of that is added to the amount of monthly |
| Before buying, you need to determine what | | | | principal payments, and that is your payment. |
| will save you money over the long run, and | | | | Most lenders want to see that your payment is |
| what might be of the most financial benefit | | | | only .28 of your income, although some are |
| in the future. It is indeed cheaper to rent, | | | | stretching it to .30 or .32. Take your |
| even in the long run (according to a Joint | | | | monthly payment (everything included) and |
| Center for Housing Studies of Harvard | | | | divide it by the percentage your lender finds |
| University study). Additionally, when you | | | | acceptable. Then multiply by 12. That is the |
| rent you do not have to pay maintenance | | | | yearly income you need.So, if your monthly |
| costs, as those are the responsibility of the | | | | payment expenses total 983 dollars, this is |
| landlord.However, there are tax benefits to | | | | what you would need: |
| owning, and the home will likely appreciate | | | | |
| in value, allowing you to possibly make | | | | 983/.28=3,510.71 |
| money. If you buy a home now for 150,000 | | | | |
| dollars, in a few years is will likely be | | | | 3,510.71x12=42,128.57.To be safe, you would |
| worth more than 200,000. Additionally, rent | | | | need to make about 43,000 dollars a year. In |
| always goes up, but your monthly housing | | | | order to see if you can manage, open a |
| costs remain relatively stable when you buy. | | | | savings account and put the down payment in |
| Until you reach the end of your mortgage when | | | | the account. For six months, add the amount |
| it drops to zero.Ultimately, it is up to you | | | | you would pay above your rent to the account |
| to weigh the pros and cons. There are | | | | (if you pay 600 dollars in rent, put 383 in |
| advantages to both renting and buying, and | | | | the account each month). If you can handle |
| you need to determine what works for you.How | | | | the extra, you can afford the house.How can I |
| do I figure how much house I can afford? | | | | know whom a real estate agent is working for? |
| | | | |
| The big question that needs to be answered | | | | When looking for help finding a home, many |
| before buying how much can one afford? To | | | | people turn to real estate agents. However, |
| figure that out, you need to take into | | | | many agents are just looking to sell a home. |