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Sam Carkhuff
Before You Look at Your First House
Experienced home buyers know that one of the first-steps in beginning a successful search for a new house is taking a hard, objective look at finances. Determining how much money you can dedicate to the purchase of your new house affects almost every aspect of buying a new home - including how we write the offer, which mortgage programs you will qualify for, shopping for the best mortgage loan and which homes are truly in your price range.
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Here are the questions that each home buyer should ask:
- How much cash is available for a down payment? The amount you have available for a down payment will affect what types of loans for which you can qualify. Learn more.
- Am I ready to write a check for the earnest money? Earnest money is a cash deposit made to a home seller to secure an offer to buy the property. This amount is often forfeited if the buyer decides to withdraw his offer.
- How much additional cash will be available to pay for closing costs? There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract. Learn more.
- What is the maximum monthly mortgage payment that I can afford? Most lenders will use the 28/36 rule to determine the maximum mortgage payment you can afford.
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The 28/36 Rule No more than 28% of your gross income can be applied to your mortgage, real estate taxes and insurance. And no more than 36% of your gross income can be applied to your mortgage expenses plus your regular debt expenses (car payments, credit cards, other loans, etc.).
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Prudential First, REALTORS® 2858 SW Villa West Drive Suite 200 Topeka, KS 66614
Office: 785 271-2888 Ext 304 Cell: 785 806-2211 Email: Sam@SamSellsTopeka.com

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This website is not intended to solicit property currently listed with another broker. My Featured Listings | Home | Your Buying Power | 9 Steps to Owning | Improvements That Pay Copyright © 2010 Prudential First, REALTORS® Portions Copyright © 2010 a la mode, inc. Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map All rate, payment, and area information are estimates and approximations only.
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