Creating a CheckList
When looking for a house it is very important to create a checklist. It organizes yourself so that when your browsing for a home, you can look to see if that home meets your list.
Job Title Location
When choosing a house it is important to consider where your job is located. You don't want your house 100 miles away from your house, so it is important to plan accordingly. The goal is to buy a house as close to your job as possible.
Before looking for a house you need to get pre apprhoved in order to figure out how much you can afford. In order to get pre approved you need your annual income, your down payment, and your credit score. All these things factor into what you can afford.
Finding Your Home
The next step is looking for your home using your checklist, and your pre approval amount. Sometimes it can be hard finding a home because the house that you want may have everything on your checklist, but it may be too much money. A home could also be in your price range but it may not have anything on your list.
Calculating Closing Cost
The closing costs for a home include your down payment, property tax, title insurance, processing fee, flood cert, mortgage application fee, commitment fee, and the appraisal.
Calculating Your Mortage Amount
To calculate your mortgage you need your property value, your down payment amount, your credit score, the number of years on your loan term, and the mortgage rate. Once you have that information, you can find your monthly mortage payment.
Can you afford it?
If you have to pay more then 28% of your monthly income in order to pay for your mortgage then that means you can't afford the property.
Job title- Music Teacher, income amount $60,000, down payment- $9000, credit score 760.
2503 s Camac st. Price- $247,100, property tax- $1,848, title insurance- $1,640, processing fee- $2,471
Total at closing- $15,999
Monthly mortgage payment- $1599, percent of monthly income 32%. The house is not affordable.