Before You Buy A House, Get Your Ducks In A Row
Not ready to buy now? That's not always a bad thing. It gives you time to get everything together.
This information that I'm going to give you will benefit you so you can have everything you need prior to starting out on your home buying transaction.
INCOME
First of all you need to get your proof of income together. That is your last three years tax returns and your last 6 months of check stubs if applicable. If you haven't filed this year's tax returns get advice from your loan officer first. Your annual household income will help you determine your purchasing power. In the average case a person can buy a house worth 3 times what their annual income is. For example if your annual household income is $150,000 then your purchasing power will be approximately a $450,000 house give or take, depending on your credit score and your debt to income ratio also known as DTI.
CREDIT
Speaking of credit that's the second thing you need to have knowledge of. What your debt to income ratio is now and what it will be after you purchase a home. New lending requirements have lowered the debt to income ratio which will weaken your purchasing power. You might have to pay off a couple bills and I can refer you to my loan officer for more accurate information on that. You only need a 580 credit score to qualify for an FHA loan.
LOANS
Speaking of loans, that is the other thing you need to have knowledge about. An FHA loan only requires a 3.5% down payment and a conventional loan can be anywhere from 5% to 20% for the down payment. So you need to have some money saved up for your down payment and 6 months of escrow, my loan officer can give you more details if you don't have one yet. There are FHA loan limits in Florida so click here to check for the county you want to live in.
AREA
Know the area you want to buy in. What are the home prices and do they match your home needs? What is most important to you- the area, the schools, the home, the proximity to attractions or shopping etc. Select your most important priorities and figure out what your deal-breakers are to save you and your real estate agent some time.
Buying a home isn't as difficult as it may seem if you have solid support and guidance along the way.
Priscilla Hammond Real Estate Agent
Desari Jabbar Realty Group
925 Main St #104, Stone Mountain, GA 30083
Happy home hunting!!
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