Very simply put:

1.  YOU NEED TO KNOW YOUR CREDIT SCORE – 640 OR BETTER

2.  YOUR EMPLOYMENT STATUS – EMPLOYED AT LEAST 2 YEARS

3.  YOUR DEBT TO INCOME RATIO –  which is the percentage of a consumer’s monthly gross income that goes toward paying debts. 

If you are a home buyer, the first step is to set up a budget before you go house shopping.  There are plenty of homes on the market for sale, so don’t feel the urge to find something until you know how much you can afford.

Knowing your credit score, knowing that you’ve been employed for at least 2 years, and finding out what your debt/income ratio is, will help us find your perfect home with less stress and worry.

Debt: How much debt do you have?  You’re more likely to have debt other than a mortgage.  It doesn’t matter to a mortgage lender how much income you have if you’ve racked up big credit card debt, or make huge student loan payments every month.  This is another sliding number over time, like income.  You may make more money soon, and you may pay off your debt in a few years, but you have to pay a mortgage now.

Income: How much money do you take home each month?  Many home buyers can be overwhelmed by their mortgage if their income doesn’t support their mortgage payment.  You may have the expectation that your salary will go up over the next few years, but if you can’t afford your mortgage when you buy your home, you’re not going to be there for long.   Most lenders advise no more than 30 percent of your gross monthly income  going toward housing expenses, but a mortgage lender is also going to look at how much of your income goes toward other debts.

There are lots of calculators and tools online to help you determine how much of a mortgage you can afford.  But remember that for all of these calculators you’ll need to know your down payment, your income, your mortgage interest rate and the property tax.   A good loan officer can also help you figure out how much mortgage you can afford, and what kind of mortgage a bank is willing to give you.

Down payment: How much money do you have saved?  Can you get more money from other sources?  Can a relative help out?  Have you researched down payment assistance programs?  The kind of mortgage and home you can afford will depend on your down payment.

I can help you by putting you in touch with a very knowledgeable, experienced, lender from Sterling National Bank.

I recommend John Iannuzzi, Loan Officer.   You can reach him at 631-835-2957. 

Now that the economy is beginning to show signs of stabilizing, people are getting back to the core values that families have always embraced.  Homeownership is definitely high on that list.  And today, from a financial standpoint, it may be the opportunity of a lifetime.

Let’s get started!