How Much House Can You Afford? Video

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How Much House Can You Afford?

Home Buying: Figuring Out How Much You can afford Too many people look at the house did like to buy and ask themselves, can I afford it? Not a smart way to go about it when buying your first house, experts tells us. Florencio Perez: Well, first they have I think they should take is go ahead and take your first time buyers class. And that will give them a lot of information as far as basics that they will need to further they’re purchasing. You will find out in those classes that is better to crunch the numbers and see how much house you can afford before you go out looking for a home. You can try to do it yourself but its better if you work with the lender. It’s a process often referred you as pre-approval in which a bank or lending institution lets you know how much they will lend you to buy a house. Florencio Perez: They should gather all there part item information what I mean by that is that they should find there last two to three years tax returns which is with the bank. Is basically going to request and they should also bring in there three months bank statements which is going to let the bank know how much they actually have in the bank or savings. And they should also bring there copies of there last paychecks stuffs, it allows and if see what there current expenses are and they could do this on at home on there own. And basically just gather all there bills and really see where they are. And what I mean by bills, they should really consider other credit cards they should consider there clear payment and really it see how they’re spending. Because what the bank is going to do is, they’re going to do the same thing. And the more expenses you have obviously the less money they’re going to let you barrow. And there are other classes that may not come up until the day you want to move in. such as how you are going to pay for the move itself, and will you be able to resists the urge to buy a new appliances or furniture to put in to that new house. Florencio Perez: What I ask to people to do is just try to consider and take in as much furniture with you as you can. It yeah, you want to make your house look nice but what you want to do more importantly is to be able to keep your house because you don’t want to lose your house as soon as you get there. Our out of pocket expenses because there is going to be a lot of people they’re going to provide services to you and those services need to get paid and that’s where the closing cost commend. And don’t forget about property tax you will be paying each year, the government certainly won’t. Florencio Perez: Now, when you purchase a property and let’s say the property is 100,000 or 1.5% is going to be 1000, and you know the banks what it does is that takes the total for the year and okay that’s your total tax for the year and then it divided by 12. So whatever you get, that’s going to be your monthly payment added to what you owe the bank. Unless you’re buying new house, it’s a good idea to plan for sadden or inhabitable repairs. Florencio Perez: And what I thinks they need to consider really is the fact that how long do it believe this roof is going to last. And then less your pain for your house in cash you can add to your new monthly expenses, homeowners insurance. Florencio Perez: Well, people should know about homeowners insurance is that it’s required by all banks. And the reason why it’s required is because the bank is securing there interest in the property. Very simply is, if the house burns down the bank is not going to have anything to come on you, you may not have the money to replace it. And keep in mind the simple rue in figuring out how much you can afford to pay for a home. Florencio Perez: The 36% rule is the ratio that the bank calculates that you can afford to pay them back. Meaning how much income is left over at the end of the month for you. So, in other words if you take a thousand dollars and you take 36% obviously is going to leave you a $360.00 that’s how much the back perceives that you will have in available for your expenses for you mortgage expenses you should say. And still be able to pay the rest of your expenses on a monthly basis without having any problems. Lenders may allow a higher ratio if you put more money down. Have a history of saving money or can prove that you’re likely to be bring him in more money. Florencio Perez: There is a lot of places where you can go for a help, to find out how much you can afford and where the places that you can obviously go is to non-profits that’s one. They’ll provide assistance in most cases but not in all cases free okay. Now, if you don’t want to go to a non-profit that’s fine you can always go to a bank, a bank will also do a pre-qualification and let you know how much you’re qualify and they’ll give you all the assistance. Obviously, they’re going to want to a business. And the third option would be on to go to let’s say, website and go through websites. You can go to a hud.gov and they have lot of information on what you can’t and can afford where you can find programs that allow you to have the most affordability. Once you know how much house you can really afford, and makes the process of looking for a new home much easier for you and everyone else involve in the process.

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Home Buying: Figuring Out How Much You can afford
Too many people look at the house did like to buy and ask themselves, can I afford it? Not a smart way to go about it when buying your first house, experts tells us.
Florencio Perez: Well, first they have I think they should take is go ahead and take your first time buyers class. And that will give them a lot of information as far as basics that they will need to further they’re purchasing.
You will find out in those classes that is better to crunch the numbers and see how much house you can afford before you go out looking for a home. You can try to do it yourself but its better if you work with the lender. It’s a process often referred you as pre-approval in which a bank or lending institution lets you know how much they will lend you to buy a house.
Florencio Perez: They should gather all there part item information what I mean by that is that they should find there last two to three years tax returns which is with the bank. Is basically going to request and they should also bring in there three months bank statements which is going to let the bank know how much they actually have in the bank or savings. And they should also bring there copies of there last paychecks stuffs, it allows and if see what there current expenses are and they could do this on at home on there own. And basically just gather all there bills and really see where they are. And what I mean by bills, they should really consider other credit cards they should consider there clear payment and really it see how they’re spending. Because what the bank is going to do is, they’re going to do the same thing. And the more expenses you have obviously the less money they’re going to let you barrow.
And there are other classes that may not come up until the day you want to move in. such as how you are going to pay for the move itself, and will you be able to resists the urge to buy a new appliances or furniture to put in to that new house.
Florencio Perez: What I ask to people to do is just try to consider and take in as much furniture with you as you can. It yeah, you want to make your house look nice but what you want to do more importantly is to be able to keep your house because you don’t want to lose your house as soon as you get there. Our out of pocket expenses because there is going to be a lot of people they’re going to provide services to you and those services need to get paid and that’s where the closing cost commend.
And don’t forget about property tax you will be paying each year, the government certainly won’t.
Florencio Perez: Now, when you purchase a property and let’s say the property is 100,000 or 1.5% is going to be 1000, and you know the banks what it does is that takes the total for the year and okay that’s your total tax for the year and then it divided by 12. So whatever you get, that’s going to be your monthly payment added to what you owe the bank.
Unless you’re buying new house, it’s a good idea to plan for sadden or inhabitable repairs.
Florencio Perez: And what I thinks they need to consider really is the fact that how long do it believe this roof is going to last.
And then less your pain for your house in cash you can add to your new monthly expenses, homeowners insurance.
Florencio Perez: Well, people should know about homeowners insurance is that it’s required by all banks. And the reason why it’s required is because the bank is securing there interest in the property. Very simply is, if the house burns down the bank is not going to have anything to come on you, you may not have the money to replace it.
And keep in mind the simple rue in figuring out how much you can afford to pay for a home.
Florencio Perez: The 36% rule is the ratio that the bank calculates that you can afford to pay them back. Meaning how much income is left over at the end of the month for you. So, in other words if you take a thousand dollars and you take 36% obviously is going to leave you a $360.00 that’s how much the back perceives that you will have in available for your expenses for you mortgage expenses you should say. And still be able to pay the rest of your expenses on a monthly basis without having any problems.
Lenders may allow a higher ratio if you put more money down. Have a history of saving money or can prove that you’re likely to be bring him in more money.
Florencio Perez: There is a lot of places where you can go for a help, to find out how much you can afford and where the places that you can obviously go is to non-profits that’s one. They’ll provide assistance in most cases but not in all cases free okay. Now, if you don’t want to go to a non-profit that’s fine you can always go to a bank, a bank will also do a pre-qualification and let you know how much you’re qualify and they’ll give you all the assistance. Obviously, they’re going to want to a business. And the third option would be on to go to let’s say, website and go through websites. You can go to a hud.gov and they have lot of information on what you can’t and can afford where you can find programs that allow you to have the most affordability.
Once you know how much house you can really afford, and makes the process of looking for a new home much easier for you and everyone else involve in the process.

Transcription by: Scribe4you Transcription Services