Do you have any financing tips for a new home?
-AG
We sure do. The first thing we advise is to know your credit. Good deals require high credit scores, especially now. The best home buying deals go to borrowers with credit scores of 740 or higher.
Secondly, do the numbers. To avoid taking on too large of a mortgage, make sure that your monthly payment is no more than 31% of your monthly income. If your family brings in $4,500 a month before taxes, your house payment including principal, interest, taxes, insurance, and any form of association dues, should be no more than $1,395. To have a lower payment would be even better.
Lastly, most lenders require down payments of at least 10%. There are programs through the Department of Veterans Affairs and the U.S. Department of Agriculture’s Rural Housing Service that don’t require down payments. Certain restrictions apply and candidates must qualify.
For more information about the above tips, feel free to contact one of our financial lenders by calling 800.326.9590.
Tags: credit scores, finance, homes, mortgage