BUY
Avoiding costly buying mistakes!
Here are some tips about buying a home to save time, money and trouble:
PLAN
AHEAD
GET
PRE-APPROVED
KNOW WHAT
YOU WANT
KNOW
YOUR BUDGET
HAVING THE CASH
TO
CLOSE
 KNOW YOUR DEBT             

Any lender will look at your income and your existing debt when evaluating your application. Lenders use two ratios as guidelines:

Housing Expense Ratio.Your monthly PITI payment (Principal, Interest, Taxes and Insurance) shouldn’t exceed 28% of your monthly gross income.

01

02

Debt to Income Ratio. Your long-term debt should not exceed 36% of your monthly gross income. (Consider any debt that will take more than 10 months to pay off – mortgages, student loans, alimony, car loans, credit cards and child support).

Orange 21 Realty - Team Members.jpg

LENDERS ARE NOT

INFLEXIBLE

However, if you can make a large down payment or if you have been paying rent close to the same amount as the proposed mortgage - the lender may be willing to cut you some slack.

  • w-facebook

© 2015 -2020 Platinum Project Management, LC | DBA Orange 21 Realty

DATE