205 N Broadway, Wind Gap, PA 18091 | (610) 419-9455 |    

Step 2: Price Point: What can you afford?

Before you go look at a single property, you need to know how much you can spend to achieve your goal of ownership. Does it make sense to look at a house you can’t possibly purchase, get your hopes up, and then get disappointed? That is the opposite of a Win-Win.

Please disclose everything possible to us about your current situation. Your trust in us is extremely important and our goal is to protect your best interests. Win Win Realty will always keep your information confidential while insuring you look at property’s within your budget. Several significant factors go into what you can afford:

•  How much down payment can you put into the purchase?
•  What is your gross income?
•  Do you have other debts?
•  How strong is your credit score?
•  Remember to figure in the taxes and insurance for the property.

We have different mortgage professionals who can provide specific advice as it relates to your potential with their institution as far as loan amount, debt to income ratio, interest rates, type and term of loan, etc. However, we feel there are some steadfast rules you need to follow:

•  Get pre-approved for a mortgage
•  If possible, get pre-approved at more than one financial institution
•  Know the 28/36 rule

o The 28 is for your total house expenses. This includes the principal and interest on your mortgage, plus the taxes and insurance on the property. They should stay below 28% of your gross family income. It is not designed to account for utilities.
o The 36 is for your total debt. This includes your house expenses, in addition to any other debt you may have. Examples include car loans, student loans, credit card debt, etc. If you have substantial other debt, say 15% of your gross income, this reduces your room for property debt to 21% to stay at the 36% total.

•  Calculate what your mortgage would be based upon the purchase of the house you like. You can use a MORTAGE CALCULATOR or simply get us to do it for you. It is easy to do, and helps you to understand the numbers immediately. This gives you confidence going into the offer phase.

If you currently have a home and if there is no mortgage on the property, great. You clearly have worked hard to get to this stage in your life and we will gladly help you to sell that home for the most value possible. However, if you want to keep that home and buy a 2nd property we will help you with that. Our goal is to be your personal representative for your real estate needs and whatever aspirations you have.

If you need to sell your existing home to get into your new home, we will help you there as well. There are many challenges presented in this scenario, but they are part of dealing in real estate. The details of how we can assist in selling your home is covered in much more detail on our seller’s page.

In conclusion, it is important to realize that family and friends, as well as your professionals with real estate experience, are there to help you make informed decisions. The goal for Win-Win is to have a client find the right house in the right area for the right price at the right stage in their life.

STEP 1: Buy vs. Rent

STEP 2: Price Point

STEP 3: The Search

STEP 4: The Offer

STEP 5: Due Diligence

STEP 6: The Closing

 Download full guide here
 



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