Finding a Lender
HOW MUCH MORTGAGE CAN YOU AFFORD?
You can save yourself a lot of wheel-spinning if you take a minute to figure out how much mortgage you can afford. Generally, a lender will want your monthly mortgage payment to total no more than 29% of your monthly gross income (that’s your monthly income before taxes and other paycheck deductions are taken out.) You also need to consider current loan interest rates. The lower the interest rate, the more expensive the home you’ll be able to afford.
MORTGAGES AND HOMEBUYING PROGRAMS
Many different kinds of mortgages are available to you. Read about them,
and make sure you understand the pros and cons of each. HUD offers some special homebuying programs. Also, many local governments offer special homebuying programs to help low-income homebuyers. Shop around - you may be surprised at all your options!
APPRAISALS
Your lender will require you to get an appraisal of the house you want to
buy, to make sure it’s worth the money that you’re borrowing. You may
select your own appraiser, or you may ask your real estate agent to help
you take care of that.
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