BUYING A FOR SALE BY OWNER HOME  
   
Written by Susan Wilcox

[ disclaimer ]

INTRODUCTION
If you've never bought a home before – and even if you have – the process can be confusing. Where do you start? Who does what? How do find the perfect house at the perfect price? How do you protect yourself from problems? Buying a home does take some time and some thought, but if you go step by step, it's simpler than it seems.


THE FIRST STEP - HOW MUCH HOUSE CAN YOU BUY?
The home buying process starts in many different ways. You get tired of paying all that money to a landlord when you could be building equity in a home. You pass by a cute little place for sale and wonder if it could be yours. Your family grows – or your "stuff" does – and you start thinking about getting a larger place.

The immediate instinct is to rush out and start looking for homes. That's fine; it's fun! But before you do, it's well worth your while to do some math.

The most common source of disappointment for buyers is to spend weeks looking at home after home only to come to the conclusion that the house they want is out of reach. It makes sense to find out what you can afford before you start shopping.

You won't have an exact figure until you visit a mortgage lender (Step 2), but there is a rule of thumb that will give you an idea of what's possible. Generally, lenders want your mortgage payment to be no more than 26-28% of your gross monthly wages (in some cases, they will go as high as 33%). Additionally, they do not want your total debt payments, including your house payments and all other monthly payments, to exceed 33-36% of your gross monthly income.

Next, check your newspaper or the chart below for current mortgage rates. You'll want to look at both fixed rate loans – where the interest rate stays the same throughout the term of the loan – and ARMS, adjustable rate mortgages – where the interest is at a lower rate for a time and then is periodically readjusted.



Once you have some sample interest rates, use a mortgage calculator to find out the loan amount you can qualify for. Good places to start are: http://www.financenter.com/consumertools/calculators/#home or http://www.ginniemae.gov/ypth/index.asp

Of course, this is just a starting point. There are many different loan programs with various down payment requirements and interest rates. Which is why it may be a good idea for you to visit…


<<Previous Page [1] 2 3 4 5 Next Page >>


    
     

 


Home | Search Listings | Buying Help | My Buyers Account | List Your Home | Selling Help | My Sellers Account | About | Contact | Resources

All Site Content Copyright 2004 MichiganEhomes.com Terms and Conditions  Privacy Policy