Step 1: Take a close look at what you can afford.
Based on what you have $saved for down payment and closing costs, set a good parameter of price range that is most comfortable. In general, when you look at monthly mortgage payments / PITI it is not a good idea to go beyond 1/3 of what your household is bringing in each month. One must also consider the amount of monthly debts that are being paid out. A good lender will be able to help you assess the target $ range for a home purchase. A no-obligation discussion with your banker or lender is a very good place to start – this will help focus your home-search so that you are not wasting a lot of time. Here’s a handy mortgage calculator if you want to check out PITI (mortgage Principal + Interest, Taxes and Insurance). If you know you are comfortable paying $1500/month in rent – we can ‘back out’ a price range for you so that we have a fine-tuned property search.
Another factor that’s important is your credit score. If it’s below 620 but you do hope to own a home – most lenders would not mind having a look with you at the credit report and pinpoint which items will best get you there; create a roadmap to bring it up to a mortgage-worthy level.
Here’s a nice NY Times article that helps you decide is it better to rent, or buy? And, for all you formula-fans there is also a handy rent vs. buy calculator in that link too.
As a buyers’ agent we’ll help you find a great property and guide you through the process once you are ready, we help get it done.
Our agents can set you up on a property search, once you have honed in on price range and wants/needs: 610.252.2552.
Need a last little bit $ to help put you over the edge to buy? Enter our BRIDGE THE GAP home scholarship contest, 2020. Be creative – what would it mean for you to own a home? Do a tik-tok, youTube or insta video, write a poem, do a rap song. Email to firstname.lastname@example.org or tag the link to #bridgethegap @freebridgerealty by Oct. 31. Winner will be announced by the end of 2020.
We highly recommend starting your home search path by getting pre-qualified. This is especially important in a highly competitive Sellers’ market, like we have now. Lender Mike Gleason with United Mortgage is an excellent place to start!
You may choose the lender you want to work with, but here are just a few that our past buyers found to be very good advisors for the mortgage process:
- Broker-Banker Mike Bower or Pedro Torres with The Mortgage Company in Allentown.
- Considering a ‘fixer upper’ or does the house you are buying really need a new roof or kitchen upgrade? Guess what: there are renovation loans for that! Ask your lender about 203k / or other renovation loan products.
- Commercial / Investment property or mixed use? Some local lenders include:
Fidelity Bank, Unity Bank, Peoples Security Bank, Lafayette Bank, Jeff Barber with Lehigh Valley Financial Group
** Make sure your lender is licensed and experienced in doing loans in the state you are buying a house in ** Avoiding last-minute stress is our goal!
There are also first-time buyer programs available through the county – check with the county you are looking in.
Considering Selling a Property? We can help you there, too.