As a General rule, any loans that extend beyond 11 months,
such as automobile loans, are termed long-term debt.For conventional
loans, total monthly payments, including PITI and all other
long-term debt, should be no more than 33% to 36% of your
gross monthly income. For FHA the ratio is 41%.
for a new home purchase
When budgeting to buy a home, it is important to allow enough
money for additional expenses such as:Utilities, maintenance,
property insurance, homeowner's insurance, and other known
much will my closing costs be?
The amount of closing costs will depend on what items are
customary for buyers and sellers to pay for in your area.
Traditions vary greatly from one area of the country to
another. In some areas, for example, the buyer pays for
title insurance. In other areas, it's the seller. In still
other areas, the cost is split. Your agent can give you
specific information on closing costs in your area. In addition,
the amount of closing costs will depend on the number of
points you pay with your mortgage loan, since these are
generally paid in advance. (A point is 1% of your mortgage
first-time buyer programs are available?
There are literally hundreds of different programs available,
depending on your location (city, state, or province). They
vary greatly from program to program.
I spend the money to have a home inspection?
Absolutely. The $200 to $500 that a professional home inspection
costs could be the best money you ever spend. Not only does
the home inspection seek out any defects, the home inspector
will often give you tips on maintaining and repairing your
Home Buying Timeline
are no absolutes on a time-frame for buying a home (some
buyers find a home their first day out while others may
take weeks or even months) but there are some general guidelines
that can help with your overall planning. These time-frames
can vary by the type of Real Estate market you are in. In
an active market, they can be compressed (you will need
to move quickly for desirable homes) but in a less active
market you may have the luxury of a bit more time.
Prior to Desired Moving Date