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Home > Buyers' Resources
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The 5 most important questions to ask when you are buying a home. 1. What does my ideal home look like? 2. Where is my ideal home located? 3. How long do I plan to live in this home? 4. How much can I afford to pay for a home? 5. If my ideal home is not available in the time period I need, or within my budget, what is most important to me? Questions 1, 2 & 3 Sail Realty's Home Buying Checklist will help you answer the first three questions. We recommend that each adult member of the home hunting family complete the Checklist separately, then compare them. This process will give you insight into areas of discussion before and as you look for a home. Question 4 -- How much can I afford to pay for a home? Mortgage companies and banks have traditionally used "qualifying ratios" to determine how much they will lend you to buy a home. In general, most use either a 28/36 ratio or a 25/33 ratio. (These can vary depending upon your credit score and other factors.) The first number in each pair is the percentage of your gross income (before taxes and other deductions) that the lender would approve as a monthly "housing" payment to cover your mortgage, taxes, insurance and condo fees, if any (PITI). For example, if you make $10,000 per month, 28% of that is $2800 per month for PITI (principal, interest, taxes and insurance). The second number in each pair is used when all debt payments are considered, not just the PITI (i.e. if you make $10,000 per month, but also have a $600 a month car payment, and a $400 a month student loan, 36% of $10,000 is $3,600, minus the $1,000 loan payments equals $2,600 for PITI). Obviously, if you have more debt, you qualify for less of a housing payment. To calculate how much you can comfortably afford to pay for a home, go to www.FreddieMac.com/corporate/buyown/english/calcs_tools. Question 5 -- If my ideal home is not available in the time period I need, or within my budget, what is most important to me? This is the "$64,000 question" and books have been written on the subject. Needless to say, most of us have to make tradeoffs. Review your responses on the Sail Realty's Home Buying Checklist to help you and your family prioritize what is most important to you. Prioritizing your "wish list" up front can save you precious time and reduce anxiety as you search for a home. |
 "It was great comfort to be able to turn to you once again for help with housing.Thank you for putting so much effort and energy into helping us, for paying close attention to the many important details involved." Elizabeth H |
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