|
Financing
The purchase and ownership of a home is likely
to be the single largest investment you will make in your lifetime.
Naturally, you will have some questions regarding financing your
new purchase.
Obtaining a real estate loan does not have to be as painful or
complicated as it appears to be on the surface. Granted, as with
any large transaction or acquirement, there will be necessary steps
to ensure the financial safety of both the lender and the borrower
are secured; however, with a reputable lender, the process can be
simplified and the borrower walked through, step by step, all the
required channels to successfully obtain the loan.
Two Questions
Typically, there are two questions regarding
financing that surface the most often: 1) Am I going to be better
off just renting? and 2) How much will I be able to borrow?
First,
renting. Certainly, the benefits of home ownership outweigh those
of renting a home. Consider the tax advantages with a home purchase.
Further, appreciation, or how much your new home’s value will increase
(meaning equity in your pocket) over the life of the loan is another
quite distinct advantage to home ownership.
And finally, while the decision
to rent or buy is often forced based on whether or not you can qualify
for a home mortgage loan, with home ownership the amount you pay
every month is being applied, at least in part, toward the principal
of your loan. Contrarily, with renting, the amount you pay is padding
the pocket of your landlord.
Secondly, qualifying for a loan. This is a more difficult question
to address. The borrower’s ability to qualify for and obtain a loan
is dependent on many factors, including the borrower’s credibility and
ability to repay the loan.
Most lenders use debt-to-income ratios
to calculate the amount you would qualify for. For example, a lender
may tell you that your mortgage payment cannot be more than 28 percent
of your monthly income, and that your total monthly debt payment
(including the new mortgage payments) cannot exceed 36 percent of
your monthly income.
A
Few Mortgage Lending Links
Florida
Mortgage Funding
Bank of America Mortgages
Fleet Bank Mortgages
Washington
Mutual
Lending
Tree
Top
|
