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).

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.