Step 1 is taking a close look at what you can afford, then you will have a nice clear range to focus on for your home search.
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).
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 this rent vs. buy calculator.
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.
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.
- Cathy Hamerstone with Lafayette/Fulton bank: 610.332.7116
- Paden Amsden with Mortgage Bankers Inc: 215-470-2009
- 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:
Merchants, 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.