DEBT TO INCOME
Although this is a main factor for any lender to delve into, you should also have a good idea what portion of your monthly income is set aside for your mortgage payments. The lender may say “you’re good to go up to $875,000” but what does that actually mean? Well it means that you’re ABLE to spend that much on a home, but is that comfortable for you? Maybe the payments are more comfortable around $800,000.Take the purchase price and ALWAYS break it down into what the monthly payments are. Need help with this? Let me know.
HOW LONG?
Is this a 2 year plan? Or a “see how the first 5 years goes” plan? You don’t need to know exactly…because who the heck does right?! But it’s worth talking about and having an idea what the future could look like. When you’re open to putting in some sweat equity and the goal is to turn a profit within 1-2 years, that process (and home) look a lot different than “Hey, we want to buy our first home and will probably be there a while, maybe look to upgrade in the future”.
WHAT’S THE MARKET LIKE?
You’re pre-approved and you know what you want. Fantastic, now the fun starts! Having a good idea of what the current market conditions are is just as vital to your success. What is the demand vs supply like right now in your micro market?Are we heading into the holiday season or are things just starting to heat up as we go into the Spring market?Looking into these things will make buying more enjoyable. Why? Because you’ll know what to expect. Nobody likes trying hard thinking they’re dong the right things….and not winning. Let’s stay informed.