With the amount of inventory still increasing, there are a lot of homes on the market to choose from. Buying a home is very exciting, but don’t get caught up in the game of extra amenities that have a higher sale price.
Generally speaking, most home buyers secure a 30-year note when obtaining financing. You have to agree, 30 years is a long time, so also visualize that there is enough time to add amenities as years go on and not get tied down with a large payment for amenities you “have to have now.” Be patient. Talk with one of Ocean Communities staff members to discuss a Savings Plan designed for your future needs.
A tip for your home buying experience would be to review what you feel you can afford. Because you may be “preapproved” for a certain amount, doesn’t mean that is what is best for you – this is something you will need to decide after you take a close look at your budget.
Lenders will look at your housing ratio as a factor on whether or not a loan amount may or may not be right for you. Your housing ratio is the ratio between your proposed housing payment (principal, interest, taxes, and insurance) and your gross monthly income. (Example: $1500 housing payment / $5000 gross income = 30% housing ratio) Generally this ratio is desired to be around 29%, but can be higher and still get approved.
Keep in mind that you don’t take home gross pay; you take home net pay, which is the pay after taxes are taken out. So technically, the ratio is higher when you are comparing the actual money you take home each week versus the monthly housing payment that will be yours for the next 30 years. Homeowners will also face utility bills, home maintenance, etc. to keep up with for the time you own your home. A lender doesn’t calculate utilities, maintenance, or items like that when approving you for a loan, so it doesn’t hurt to complete your own analysis of what you can afford!
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