First Time Home Buyers Tips

First-time buyers are often unsure about the financial aspects of buying a home, and you may have many questions swirling in your head.

How much can I afford?
Do I need a large down payment?

Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs, and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow.  This is your debt to income ratio.

The financial rule of thumb is: your total monthly debt service, which will include your monthly mortgage, shouldn’t be more than about 36 percent of your gross monthly income. Most experts say that your monthly housing expense, including taxes and insurance, should not exceed about 28 percent of your gross monthly income.

Naturally, every situation is different, and each lender has different rules about working with buyers. A number of choices within your control can affect your monthly payment as well. For example, you might choose an adjustable rate loan, which has a lower initial payment than a fixed rate program. Similarly, a larger down payment may lower your monthly payment.

If you’d like more information about how much home you can afford, please call or email and I can put you in touch with a local lender

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Hermosa Beach

Vista Sotheby's

Vista Sotheby’s International Realty is one of the top real estate firms in Southern California with local expertise and a global and national reach.

ADDRESS:

423 25th Street, Hermosa Beach CA 90254

Phone:

310.251.2344

E-mail:

keith@keithkylehomes.com

CONTACT AGENT

Hermosa Beach realtor Keith Kyle with Vista Sohtheby's
Top Producing Realtor

Keith Kyle

DRE #01712785

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