Urban 602 Can Help You Decide on the Right Mortgage for Your Home One of the most important decisions you will make when purchasing Phoenix metro real estate is how to finance your real estate purchase. Urban 602 is proud of its association with many mortgage specialists who can help you find the right financing conditions for you. Whether you want to buy Phoenix real estate with traditional or creative financing, we can help. Urban 602 has developed many long-term relationships with mortgage lenders who reflect our values. Planning is one of the most important aspects of buying Phoenix real estate. If you are a first-time home buyer or you are planning to relocate or upgrade, plan ahead. Although Phoenix area real estate is readily available, our associate lenders are always looking for prime borrowers. Q: How much can I afford to pay for Phoenix area real estate? A: You should typically expect to spend about one third of your monthly income on housing. One of the first things you should consider when shopping for Phoenix real estate is how much money you have to spend and how much house you should expect to get for that amount. Here’s an example: If you gross $60,000 a year, you should expect to spend 28 – 36 percent of your income on housing each month. Include taxes and insurance in your costs. That means, you should look for a primary home that will cost you $1,680 to $2,160 per month maximum. Q: How much will my payments will be on a house? A: There are many handy mortgage calculators available online like the one included on the Urban602.com website. That’s a good place to start. However, the sales price of your home is not the only factor to consider. The first thing you should do before shopping for real estate is pay down as much debt as possible. If 70 percent of your income is going toward revolving debt, there won’t be enough left for housing and other living expenses. Be sure to factor in the cost of insurance and taxes, mortgage insurance, and homeowners association dues – these vary by locations. You should also determine: - the amount of interest you are likely to pay
- the life term of the loan
- the amount of down payment you can afford
- the type of loan you acquire
- available housing programs that could insure your loan and therefore lower your interest rate
- special programs for which you might qualify as a school teacher, police offer, farmer, rural resident and others.
Q: How important is my credit history? A: Take a good look at your credit history before shopping for real estate. Get a credit report from one of the three major reporting agencies: The Federal Trade Commission enforces a federal law that entitles citizens to one free credit report per year. You can log on to annualcreditreport.com or call 877-322-8228 for your free copy. Your ability to get a loan, the conditions of the loan and the amount of money you can borrow to purchase real estate will depend largely on your credit history. Be sure to check your report for inaccuracies and dispute mistakes as soon as you find them. Lenders will also look at your work history and job stability, your debt-to-income ratio and your debt history to determine your loan eligibility when you seek a home loan. Don’t automatically assume you aren’t qualified for a loan to purchase Phoenix area real estate if you have a less than perfect credit history. There are many means of creative financing that can help you achieve your goals. Urban 602 helps people buy and sell Phoenix area real estate every day and will be happy to help you find an honest and reputable mortgage lender to help you finance your home. |