Don't change jobs or take on any new debt. You credit is extremely important and you want it to be as clean as possible. Changing jobs can result in not qualifying for the loan, especially if your new job is in a different line of work.
While many borrowers are well aware of the financial obligations of a mortgage, taxes and insurance they often underestimate the cost of home maintenance. You should budget some savings for not only the basic indoor and outdoor maintenance of your home but also the personal touches you will want to make once the home is yours. Things like painting, wall paper, window dressings, etc. can quickly add up. You may want to consider putting less money down and save some of that cash for once you are in the home.
Before you begin the loan process and house hunting figure out what your comfort zone is for a monthly housing payment. You know your finances, investment strategies, and monthly cash flow better than anyone and should decide how much of monthly housing payment you would fee comfortable making each month. Keep in mind that you will be responsible for paying your homeowners insurance and property taxes also.
Before you start looking for a home, contact a reputable lender to determine what loan amount you can afford. Discuss different loan products before deciding. It is always a good idea to talk to at least 3 different lenders and realtors prior to committing. It is important to feel comfortable with the people you hire because they work for you!
After being pre approved for home financing you will want to work with a NYrealtor to help find your new home! If you are not familiar with NY realtors in your area please contact me LYip@MyMortgageBrokerage.com and i can put you in touch with a preferred realtor!
People are often suprised when a mortgage professional tells them how much they can afford to spend on their house payment. It seems too high!
First, most people will get a big tax deduction for their mortgage interest. When this is factored in, they often have $200, $300 or even more extra every month.
Second, if you spend a lot on entertainment and hobbies you will want a lower house payment than someone else who makes the same income but spends little on entertainment and hobbies.
To determine an approximation on what your monthly payments will be - Divide your gross monthly salary into thirds. One third represents your taxes, another third represents your day-to-day living expenses and the last third is your housing expenses (which would include your mortgage).
Example: You earn $36,000/year. A third is $12,000. So your mortgage payments should be not much more than $12,000/year or $1000/month.
