* You are not counting on price appreciation in the short term. Here are some frequently cited reasons for buying a house: Your total debt-to-income ratio should be in the 34 to 38 This ratio should fall between 28 to 33 percent,Īlthough some lenders will go higher under certain circumstances. If you have to pay monthly homeowners association duesĪnd/or private mortgage insurance, this also will be added to your PITI. Loan, property taxes and hazard insurance (or PITI as it is known). It is determined byĬalculating your projected monthly housing expense, which consists of the principal and interest payment on your new home the amount of cash you have available for the down payment, closing costs and cash reserves required by the lenderĪnother number lenders use to evaluate how much you can afford is the housing expense-to-income ratio. Pay for a home will depend on six factors:Ģ. Most will be happy to roughly calculate what you can afford and prequalify you for a loan.
It pays to check with several lenders before you start searching for a home. Payment or more than 36 percent on debts. In general, lenders don't want borrowers to spend more than 28 percent of their gross income per month on a mortgage Know what you can afford is the first rule of home buying, and that depends on how much income and how much debt you Mortgage loans requiring little or no outside documentation often can be obtained with down payments of 25 percent Other real estate experts tell borrowers facing rejection to compensate for negative factors by saving up a larger down Lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant's income. Spending 40 percent of their monthly income on rent - and still promptly make the payment each time - has prompted some The fact that some loan applicants are accustomed to Payment, combined with all other debts, to 36 percent of the total. What is the standard debt-to-income ratio?Ī standard ratio used by lenders limits the mortgage payment to 28 percent of the borrower's gross income and the mortgage It also depends on how well the house has been Newer homes will cost less to maintain than older homes.
Gutters, caulking windows, sealing your driveway and the myriad other maintenance chores that come with the privilege of How much will I spend on maintenance expenses?Įxperts generally agree that you can plan on annually spend 1 percent of the purchase price of your house on repairing Information, knowing it will not be transmitted to the other broker and ultimately to the seller. A buyer's agent usually must be paid out of the buyer's own pocket but the buyer can trust them with financial * A buyer also can hire his or her own agent who will represent the buyer's interestsĮxclusively. The seller will accept less than the list price, or disclose to the seller that the buyer will pay more than the offer price, without Therefore, the law states that a dual agent shall not disclose to the buyer that A potential conflict of interest is created if the listing agent hasĪdvance knowledge of another buyer's offer. * Dual agency exists if two agents working for the sameīroker represent the buyer and seller in a transaction. That the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-īroker, who brings the ready, willing and able buyer to the table. * In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller.
Possible agency relationships before they enter into a residential real estate transaction. Some states require agents to disclose all Agents working for buyers have three possibleĬhoices: They can represent the buyer exclusively, called single agency, or represent the seller exclusively, called sub-Īgency, or represent both the buyer and seller in a dual-agency situation. Of trust you have with an agent may depend upon their legal obligation. Real estate agents would say that the more you tell them, the better they can negotiate on your behalf.
How much does my real estate agent need to know?
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