In my work as a Realtor, when I deal with buyers seeking a home, a main issue is the mortgage. Especially in the current market, where a mortgage is not as easy to obtain as they once were, being approved for a mortgage is important.
I have contacts in the mortgage world and can put you in touch with some, should you require a mortgage and/or have specific questions. However, I will address some of the basics.
Most prospective homeowners can assume they will be approved for a mortgage that costs between 2 times and 2 and half times their gross income. Meaning, a person earning $100,000 per year can afford to mortgage about $200,000 to $250,000; this is a rule of thumb.
A downpayment of at least 20% of the purchase price is generally required. Many first time prospective homeowners are having this requirement as one of the major obstacles.
Be aware of the percentage of your yearly gross income that will go towards your mortgage each month. The total of the mortgage principal and interest payment, home taxes and housing insurance should NOT exceed 28% of your gross monthly income.
Your debt situation will also be scrutinized. Your gross income to cover your debts should not be more than 36%. The debts include your mortgage, credit cards, child support and other loan payments. If you earn $100,000 per year, the most you should have in debt-related expenses should be $3,000. To calculate this, multiply your gross income by 0.36 and divide by 12.
For more specific questions, you can contact me. If you are thinking of selling or buying a home, or require more information, please text me or call me at 561-247-3550. Please text or call to give me your name, telephone number and e-mail address for the ability to access home searches.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
www.langrealty.com/agents/michael-friedman
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
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