Determine Your Price Range
Your price range will be determined by the amount of the loan you can qualify for and the amount of down payment money you have available, given a variety of determining factors. These factors include and are not limited to income, length of employment (usually no less than two years in the same field), credit score, loan-to-value ratio (which depends on the appraised value of the home and the amount of your down payment), and your overall debt-to-income ratio (including the amount you intend to borrow to purchase your home).
The basic qualifying debt to income ratio for conventional mortgages is roughly 36/41, meaning that you are allowed to spend up to 36% of your gross monthly income for housing expenses—which include principal, interest, taxes and insurance(PITI)—and a total of 41% of your total gross monthly income on both housing expenses and other payments of long-term debt. (Note: these criteria fluctuate by lender, amount of down payment and the specific mortgage program you have applied for. Depending on the amount of your down payment and overall debt these ratios could be a little higher) Please discuss this in detail with your potential lender.)
Other types of loans such as FHA and VA Mortgages can have slightly higher ratios.
The good news is that you don’t have to worry about figuring all this stuff out on your own! Your local bank, credit union or mortgage broker will help you determine what mortgage amount you can qualify for and your housing price range.
To begin searching for properties in Ulster County and surrounding areas, click here.
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