Do You Have An Existing Home

Business.

Considerations when buying a home - so you are ready to buy a home? What kind of home are you looking for and where do you want to live. Do you know how much house can you afford?

Do you have children? - let' s find the answers to these questions and embark on this thrilling but stressful search. If so are there schools and parks? First you may want to talk to a loan office or a mortgage broker. Find someone with several programs and familiar with Florida' s specific programs. Find a local lender, ask around and find a mortgage professional with good reviews and considerable experience. It is best to err on the conservative side of your budget when determining how much house you can afford.

Your buying power will depend on how much available money you have for a down payment and how much the lender will loan you. - rule of thumb is a home that costs up to 2 and one half times your yearly gross income. The larger the down payment the lower the cost of your home will be. The lender might want you to have at least a couple months of mortgage payments in savings. There are closing costs which typically total between 3 to 6% of the loan and include points, fees and inspections. There will probably be a need for miscellaneous costs for example: moving, and furnishings, repairs. Do you have an existing home?

How much you can afford in monthly payments will be determined by your income and existing debt. - if you still have this home can you afford( 2) homes? If you have a lease when does that expire? You may consider a new home purchase contingent upon selling your existing home. You may be able to negotiate a termination of the lease. Factor in the real estate' s commission and find out what the broker will do to market your home. You may want to use a real estate broker to determine how much homes sell for in your area.

There are( 2) ratios which serve as guidelines: Housing Expenses - This is your monthly mortgage payment along with property taxes and insurance and cannot exceed 28% of your monthly gross income. - these guidelines are somewhat flexible. The second ratio is debt to income ration which should not exceed 36% of monthly gross income. What kind of home do you want. How many bedrooms and bathrooms do you want? New or existing?

Do you want some land etc? - check out property taxes and homeowner insurance. When you research the area you want to live in. What is the crime rate, are there stores, mileage to work in close proximity? Liens, zoning issues or easements? Are there restrictions on the property that is. This information may have been helpful in determining how much home you can afford.

You have done the research and know where you want to live and what kind of home you want. - you know what costs to expect and how much money to save. Existing or new construction.