Category: Buy Loft

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Planning your Mortgage Payments What Payments Can You Afford? — L.A. Loft Loans

Dreaming of your new loft? Do your groundwork first when planning your mortgage budget.

There are important factors you should be aware of when deciding what your ideal payment should be.

Personal Considerations for Homebuyers 

A lender could tell you that you can afford a considerable estate, but can you? Remember, the lender’s criteria look primarily at your gross pay and other debts. The problem with using gross income is simple: You are factoring in as much as 30% of your paycheck—but what about taxes, FICA deductions, and health insurance premiums? Even if you get a refund on your tax return, that doesn’t help you now—and how much will you get back?

That’s why some financial experts feel it’s more realistic to think in terms of your net income (aka take-home pay) and that you shouldn’t use any more than 25% of your net income on your mortgage payment. Otherwise, while you might be able to pay the mortgage monthly, you could end up “Loft poor.” 

Here are the personal income factors you should consider when you start shopping for your new loft.

1. Income 

Are you relying on two people’s jobs to pay the bills? Is your current position stable? Can you easily find another position that pays the same, or better, wages if you lose your current job? If meeting your monthly budget depends on every dime you earn, even a small reduction can be a disaster.

2. Expenses 

The calculation of your back-end ratio will include most of your current debt expenses, but you should consider future costs like college for your kids (if you have them) or your hobbies when you retire.

3. Lifestyle 

Are you willing to change your lifestyle to get the house you want? What is your PBJ for lunch threshold? If fewer trips to the coffee shop and a little tightening of the budget don’t bother you, applying a higher back-end ratio might work out fine. If you can’t make any adjustments or already have multiple credit card account balances—you might want to play it safe and take a more conservative approach in your house hunting.

What mortgage concerns do you have? Leave a comment here.

4. Personality 

Even twins don’t share the same personality, regardless of their income. Some people can sleep soundly at night knowing that they owe $5,000 per month for the next 30 years, while others fret over a payment half that size. The prospect of refinancing the house to afford payments on a new car would drive some people crazy while not worrying others at all. You need to find out what fits your dreams.

#newlofts #DTLAloftmortgage

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When it comes to mortgage financing no two people are the same, not even Legos

Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.

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Five Tips For First Time Home Buyers To Consider When Getting Ready To Shop For A Home

Five thoughtful tips for first time home buyers that everyone should use.

  1. A some what forgotten cost to the buyer are the costs of closing the transaction. There are extra costs in purchasing a home. You need to set aside enough for closing costs. These cost may include fees for an attorney, a title search, title insurance, taxes, lender costs and some upfront housing expenses such as homeowners insurance. The amount a buyer will pay in closing costs varies based on the size of the loan and local taxes and fees, but a general rule is that they average 2% to 5% of the purchase price. Although it’s common to put 20%, the amount you decide to pay upfront varies. We understand that even a small down payment can be a hefty amount. For example, a 5% down payment on a $250,000 home is $12,500. If you’re not quite making the salary you’re expecting to make, first time home buyer programs allow as little as 3% down. However, keep in mind that a smaller down payment means higher monthly mortgages.
  2. We recommend using an online mortgage calculator to help you navigate your preferred monthly payments. Using budgeting apps such as Nerd Wallet will also keep you on track aligning your financial goals.
  3. Your overall credit score will be one of the most important factors in mortgage lender’s decision on wether you qualify for a loan. Reduce or pay off any debts or loans you are making monthly payments on. The lenders are more likely to give a better rate on your home loan and a clean slate makes it easier to identify your ideal payment amount. Decreasing the amount of debt you owe is a great way to increase your credit score. A study conducted by Credit Karma foud that the average credit score among home buyers between 2017 and 2018 ranged from 622 to 730. Over a 30 year loan you could save thousands of dollars simply by having a better credit score and a lower interest rate as a result.
  4. We understand that giving up your weekends to spend them looking at dozens of homes back to back can be tiring, but trust us it’s worth it. By attending open houses you’re able to use your imagination to see yourself living in one type of home or another. Take notes, if you look at many houses you will benefit from having notes help compare one house from another. Attending an Open House more than once at a property also shows interest and the seller can become more inclined to offer you more incentives to help close the deal.
  5. The main reason to buy is to secure your home in a neighborhood you want to live in without the worry of being priced out in the rental market. Choose the location based on where you actually want to live. Being nearby grocery stores, restaurants and stores allow you to decrease your spending in transportation costs and make for a convenient location.

#entarispowerful #firstimebuyers

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LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.