With so many Windsor properties for sale today and the real estate market slowly improving, first time home buyers are realizing that now is a good time to buy a home. Getting a mortgage is often described as a difficult and stressful experience, however, it doesn’t have to be. By being organized, working with a reputable mortgage company and weighing all of your options, you may wonder, what all the fuss was about.
1. The first step before looking at any Windsor properties is to first research what you can afford. A mortgage broker can sit down with you and determine how much you can spend. They will calculate your income to determine the maximum you can borrow. Of course, that doesn’t mean you need to borrow the maximum amount, but it gives you an idea on the very most you will be able to borrow. For a serious home buyer, it’s never a good idea to look for a home without having spoken with a mortgage company first.
2. Down payments: The idea is that the more you put down, the better you will look to a mortgage lender. Of course, the lower house payments are nice as well. While saving for a down payment is often daunting, it can be done.
3. Ratios: When discussing your loan application with your lender, you will hear about ratios. This is when your lender will figure out what you spend on your current debts, and figure it into your house payment. Most loan companies agree that your house payment, taxes and utilities should be around 32% of your income plus any other monthly obligations that you have such as credit card payments shouldn’t exceed 40% of your income.
4. Don’t Forget Closing Costs: It’s very easy for a first time home buyer to forget that they are not only paying for a home, but for the closing costs as well. These costs usually take the inexperienced buyer by surprise, as they can be costly. For example, you will need to pay for an appraisal, home inspection, homeowners and title insurance. Often, your real estate agent can work and have the seller pay for some closing costs. Don’t hesitate to talk to your agent about this. Some sellers may be agreeable, especially if their home has been on the market for a while.
So the bottom line when searching for Windsor properties: Your first call should be to a mortgage company and once you know what you can afford, then it’s time to find a home!
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