Townhouses When my husband and I bought our first home we were pre-approved for an amount that was considerably more than we wanted to spend on housing. We decided that we did not want to spend more than 25% of our monthly take home pay on housing. We were pre-approved for an amount closer to 35%
A Conservative Approach To Buying A Greater Baton Rouge Home….If you’ll be buying a home this year, I strongly suggest you take Teresa Boardman’s advice!
As a Greater Baton Rouge Home Appraiser for the past 23 years, several of those years have been appraising FORECLOSURES BECAUSE BUYERS BOUGHT TO MUCH HOME, GOT INTO A MORTGAGE 35% TO 45% of monthly take home income when lending was less stringent. In real estate, as in other jobs or professions, incomes fluctuate and when incomes are down, YOU DON’T WANT TO BE IN THE SITUATION OF STRUGGLING TO MAKE THE MORTGAGE PAYMENT!
“Before buying your first home consider what percentage of your income you want to spend on housing. Keep in mind that in addition principle and interest on the mortgage most home owners have property taxes and home owners insurance. When buying a condo or townhouse add in association dues. Also consider the cost of transportation if the home is far from jobs or in an area that isn’t walkable.
Stick with your budget when house hunting. Decide how much you want to spend before talking to a lender. If you can not find the style of home you would like in your preferred neighborhood that is in your price range either change your criteria, or hold off on buying a home until your income goes up.”
Read Teresa’s Advice here:
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