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Real Estate Tips
Current Topic:
Affording A Home
Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talking with a lender and getting pre-approved for a loan puts you in a stronger negotiating position with sellers.
As a rule, your monthly housing costs should not exceed 28% of your monthly pre-tax income. These costs include the mortgage payment, real estate taxes, and insurance. If you have long-term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA loans, are more flexible with these basic guidelines.
Depending on which type of mortgage you select, you can consider houses in various price ranges. An adjustable-rate mortgage will usually enable you to qualify for a higher loan amount. Your real estate agent can help you make the basic calculations. Remember that buying at the top end of your price range gives you more time to outgrow your home, and can save you money over the long term. For professional advice on all
aspects of buying and selling real estate in the Naples area, please call me at
800-490-4315, ext. 35 or email me.
| REAL ESTATE TRIVIA |
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What does the abbreviation PITI stand for?
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| A |
Principal, Interest, Taxes and Insurance are the four major items included in a monthly mortgage payment. |
| More Real Estate Trivia |
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Naples home sales are
growing!
The median price of a home is
$225,000
The average home is on the market 90
days.
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