Buying a home is probably the largest investment you will make in your life. Before you get started, do your homework. 

1. How much house can you afford?
Mortgage lenders are primarily concerned with your ability to repay your mortgage. To determine if you qualify for a loan, they consider your credit history, your monthly gross income and how much cash you'll be able to accumulate for a down payment for the purchase of the home.  Mortgage 101 is the place to learn about mortgages.

2. Calculate your payments.  The housing expense, as a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 28 percent of your gross monthly income.  What is a ARM ?

3. Debt to Income Ratio
The total debt-to-income shows how much of your gross income would go toward all of your debt obligation, including mortgage, car loans, child support and alimony, credit cards, student loans and condominium fees.

4. Real Estate Property Taxes
Because real estate property taxes are part of your monthly mortgage payment, it is important to get an estimate of what yours would be. Ask about the current tax rates that apply in your area. 

5. Insurance and Hazard Insurance
Remember, you must insure your property to obtain a mortgage. Get an estimate of Insurance costs from your local insurance agent.   

If you need further information, call Suzi at (530) 873-6146 or email: This email address is being protected from spam bots, you need Javascript enabled to view it for your consultation.