In this episode Eden K. Tewelde will discuss the step by step process of buying home for the first time.
Step 1. Educate yourself to understand Real Estate Market and familiarize yourself with the Real Estate market trend in the area you are planning to buy.
Step 2. Find out how much you can afford. Different lenders use different calculations to find out how much you can afford. Points you should consider;
a: Your monthly housing costs should be equal to or less than 32% of your average gross monthly income.
b: Your monthly debt load should be equal or less than 40% of your average gross monthly income.
C: Your purchase price should not be greater than your annual income multiplied by 3 or 5 times.
Step 3. Get Pre-qualified & Pre-approved for your Mortgage. You need to provide some financial information to your mortgage banker (ie, employment letter, your income , amount of savings & investments you have). At this stage, you will find the purchase price of the homes you should be looking at.
Step 4. Find the right Real Estate Agent. Things you discuses with your agent should include the location, the type of home you are interested and your other needs.
Eden K. Tewelde