Wondering How Much Mortgage You Can Afford? Here's How to Calculate ItMany people are aware of the financial commitment that is involved when investing in a home, but what that amounts to is different for every person. From what you can afford to what a lender will allow, there are plenty of details involved in determining the right home for you. If you’re not quite sure what the right price is, here’s how to approach home ownership and determine your debt-to-income.

Calculating Your Debt-To-Income Ratio

You may not know what your DTI ratio is, but it has a lot to with how much home you can afford. In order to calculate this amount, add together all the debts you owe each month and divide them by your monthly pre-tax income. For example, if your credit card is $150 and your rent is $900, your debt amount would be $1050. Divide this amount by your income, say $2500, to get 0.42. This means your DTI ratio is 0.42 or 42%.

What Your DTI Means

While a DTI in the high 20s or low 30s is good, anything that hovers above 43 percent may serve as a red flag to the lender. The lower your DTI ratio is, the more likely it is that a lender will approve your mortgage application since you’ll have the disposable income to deal with financial hurdles. If your dream home has you hovering close to this amount, it may be a sign that it’s a bit out of reach.

How Do You Want To Live?

It’s quite common to be taken over when you find your dream home and decide to commit. However, buying a home is a huge financial commitment, and if you’re buying more than you can afford it may drain your well-being over time. Instead of diving in, determine other expenses that are likely to come up in the next few years, whether it’s travel, a child or a new car. It’s important to have the home you want and budget when buying it, but you’ll still need to financial wiggle room in case something comes up.

There are a lot of factors involved in determining how much house you can afford, but by calculating your DTI ratio and being aware of your spending plans, you’ll be well on your way to an ideal price range. If you’re currently on the market for a home, contact one of our mortgage professionals for more information.

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4 Terrible Mistakes Made by First-time Home Sellers

by Yael Ishakis on January 12, 2017

4 Terrible Mistakes Made by First-time Home SellersThere are a lot of different factors that go into selling a home for the first time that can make it a stressful process, but there are a few things home sellers should avoid for a successful sale. If you’re going to be putting your home on the market in the near future and are hoping for quick success, here are some common mistakes you’ll want to be sure to bypass.

Pricing Your Home Too High

It’s entirely likely that there’s an amount you have in mind when it comes to selling your home, but it’s important that your asking price is in line with the market conditions and what’s being offered. Instead of winging it, check the local neighborhood listings and see what similar homes are selling for so yours won’t be left to linger on the market.

Forgetting The Small Repairs

After you’ve put your home up for sale and have arranged an open house, one of the first things people will notice is the small repairs; like paint chips or loose doorknobs; that haven’t yet been fixed. Instead of letting this negatively impact the offers you’ll receive, complete the little fix-ups before you schedule your open house so potential homebuyers are not turned off.

Missing On Marketing

There are so many avenues for selling a home these days that it can be hard to know which way to go. However, it’s best to consider all of your options and utilize social media to widen the audience you’ll attract. Keep in mind that if you’re investing in a website or brochures, it’s important to hire a good photographer to show your home in its best light.

Selling It On Your Own

Hitting the market on your own can be rife with a lot of questions, so as a first-time seller you may want to consider the services of a real estate agent. It’s just important to ensure that the person you choose is qualified and has experience in your community so they can steer you in the right direction and offer up helpful advice when it’s required.

Selling a home for the first time can be a stressful thing to take on, but by utilizing the right agent and having reasonable expectations, it may be off the market before you know it.

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4 Things You Absolutely Should Not Do After You Apply for a Mortgage

January 11, 2017

If you have a good credit history and are prepared to invest in a home, you may be feeling pretty confident about the mortgage process. However, it’s important to be aware that there are things that can have a negative impact on your application.

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Understanding Real Estate Contracts and What You Can Expect to Find

January 10, 2017

There are a lot of things that go into the successful sale of your home, but many people are unfamiliar with the intricacies of the contract. Whether you consult with your real estate agent or plan on diving in on your own, it’s important to be clear on the terms. If you’re wondering what you can expect when it comes to the contract, here are some pointers on what to watch out for.

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What’s Ahead For Mortgage Rates This Week – January 9, 2017

January 9, 2017

2017 started with good news; fixed mortgage rates were lower, but the national unemployment rate ticked upward and labor reports showed fewer openings for public and private sector jobs. Construction spending was higher in November.

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Understanding the Reverse Mortgage and How to Use It to Pay Off a Regular Mortgage

January 6, 2017

There are a variety of mortgage products out there that serve the needs of different homeowners, but for the uninitiated it can be hard to know what will work best for them. If you happen to be close to retirement and are looking at options that will be more financially beneficial for you, here are the details on a reverse mortgage and how this product can work for you.

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The Pros and Cons of ‘Mortgage Before Marriage’ for Young Couples

January 4, 2017

There was a time when a higher percentage of people were married before they committed to buying a home together, but it’s a lot more common to co-habit and invest in a home together. If you’re considering the commitment of a mortgage without being married, here are some things to be aware of before you start searching the market.

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5 Major Red Flags to Watch for When You’re Touring an Open House

January 3, 2017

An open house is one of the best opportunities a potential homeowner will have to take stock of a home and determine if it will work for them. If you’re currently perusing the open houses in your neighborhood, here’s some things you should make sure to watch out for.

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What’s Ahead For Mortgage Rates This Week – January 2, 2017

January 2, 2017

Last week’s economic reports were in short supply due to the Christmas holiday. Events reported included Case-Shiller home price indices, pending home sales and weekly readings on mortgage rates and new jobless claims. Consumer confidence was also released.

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Selling Social: How to Leverage Your Social Network to Sell Your Home Faster

December 30, 2016

There were days when the marketing of a home involved plunking a sign into the front yard, but with the power of the Internet, there are many mediums through which home sellers can find potential buyers. If you’re currently looking at ways to use the power of social media in order to get your ideal purchase price, here are some things you can do to best harness its capabilities.

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