R. Pereira "Realtor"

(562)756-4805

Century 21 A-Team

Before You Look at Your First House

Experienced home buyers know that one of the first-steps in beginning a successful search for a new house is taking a hard, objective look at finances. Determining how much money you can dedicate to the purchase of your new house affects almost every aspect of buying a new home - including how we write the offer, which mortgage programs you will qualify for, shopping for the best mortgage loan and which homes are truly in your price range.

Don't just let your REALTOR decided what it is good for you, you are the only one that knows exactly what you want and what you can afford.

Please make sure you interview no just one REALTOR in your area to help you, sometimes just because one REALTOR is recommeded doesn't mean he/she will be the best for you. 

Here are the questions that each home buyer should ask: How much cash is available for a down payment? The amount you have available for a down payment will affect what types of loans for which you can qualify. Learn more. Am I ready to write a check for the earnest money? Earnest money is a cash deposit made to a home seller to secure an offer to buy the property. This amount is often forfeited if the buyer decides to withdraw his offer. How much additional cash will be available to pay for closing costs? There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract. Learn more. What is the maximum monthly mortgage payment that I can afford? Most lenders will use the 28/36 rule to determine the maximum mortgage payment you can afford. Don't forget all these options can vary according to Market Changing trends. Never, Never, Never make up Personal checks to any agent's name, if any checks has to be written make sure is to the agent's office name so the broker should be responsible for it.

The 28/36 Rule
No more than 28% of your gross income can be applied to your mortgage, real estate taxes and insurance. And no more than 36% of your gross income can be applied to your mortgage expenses plus your regular debt expenses (car payments, credit cards, other loans, etc.).