If you were buying your first home, what information would you want to know?

I want to share my own experience about my first home.

I don’t have enough savings to get my own home.

But my husband insists me to get our own home, because landlord was not good.

So I decide to get a mortgage, but before I get mortgage I was afraid of this.

Even I don’t know what the procedure is and what are the terms and conditions and what question I have to know etc.

All I know is my salary was $75,000 and my husband salary was $100,000.

I visited a lender, he guide me about credit score, PITI, DTI and some about down payment according to my income.

He ask me few questions and do calculations

1: Is your PITI less than 28%?

PITI is principal: Interest: Taxes: Insurance.

Calculation:

$175,000*28/100=$49,000

2: Is your DTI less than 36%?

DTI contains:

Mortgage, credit card payments, child support and other loan payments

Calculation:

$175,000*36/100=$63,000

3: Down payment of 20%.

Remember; down payment directly affect your total amount of mortgage.

More the down payment will minimize the interest rate on mortgage.

According to survey a person can easily afford mortgage double or even more than the double of his salary. So according to your salary

$175,000*2= $350,000

$175,000*2.5=$437,000

You can easily afford from $350,000 to $437,000 if DTI and PITI is under control.

So we go with $437,000 and now we are happy.

Hope this will help you, but for further details feel free to visit:

http://www.beingarealtor.com

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