Dear Conscientious,

Here is a rule of thumb, if your housing payment and your total debts will equal more than about 44% of your total income (gross), you are probably in the wrong price range. Remember to calculate on the gross and NOT the net number. Use your monthly income as a guide. Of course, the best decision is to consult with a reputable lender, preferably a bank who routinely does mortgage financing or a Direct Lender. You will have typically higher fees or rates with a mortgage broker.

Let me know if there is any other help that you might need in this arena. While I have been a Realtor for many years, I am also experienced as a loan originator and have specialized in working with first time buyers.

Carol Murray Cei
ReMax Millennium
215-643-9661
215-379-1100 x1720
carolcei@remax.net

The generic response is to contact a mortgage lender and determine what you qualify for based on your financial snapshot today. If the outcome of the conversation allows you the opportunity to purchase a home that meets your needs, then good hunting!

However, your debt load will impact your quality of life. By undertaking a house payment (another debt obligation), you will be adding to your monthly outflow (a large chunk at that) and you'll need to ask yourself how it will affect your personal lifestyle and goals, today and into the future. There are obviously more points of conversation to consider, but I leave that to yourself to take the time and evaluate your decision prior to making the largest financial commitment in one's life. Hope this helps.

Hello Conscientious,

My best advice to you would be to find yourself a reputable lender who you can depend on and who will look out for your best interests.

I can tell you from experience that finding a good lender will be challenging. Throughout my years in the business, I've only worked with less than a handful of lenders. The mortgage is probably the most important factor in the real estate transaction so its best to have someone on your side.

I do think that its best to get your scores up because the higher the score the better your rate will be and don't let lenders kid you by telling you that they can give you a certain rate because nobody can promise you any rate until you find your home. Sure, they can tell you what the rate is on a particular day but until you have a signed Agreement of Sale, they can't promise you anything.

I do have a question for you though if you do not mind. Have you seen your three credit scores recently and your credit reports? If so, you can go over that with the lender/consultant and they can surely advise you on how best to bring up your scores.

Realtors are not lenders so any advice other than speak with a lender/consultant, a Realtor gives you, I would take with a grain of salt.

An FHA loan requires a 3.5% down payment

So, as I advise many consumers the importance of finding a buyer's agent before they go looking at homes, it is just as important to have a mortgage lender/consultant before you do anything.

Many times the buyer agent that you hire will have a few names of reputable lenders/consultants that their past clients have used and you may want to check those out.

I have very high standards for the lenders my clients use. There are some important questions you need to ask the lender/consultant to assure that you will be in great hands.

I'd love to talk with you further about your particular situation. Feel free to email me or call me at (215) 669-0589.

You can also check out my website and read my blog to get a better grip on what type of Realtor I am. http://www.reneeporsia.com

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
http://www.reneeporsia.com

Dear Conscientious,

Its great you are thinking of buying a home, there couldn't be a better time. The best source of the detailed information you are looking for would be with a mortgage representative. The amount of debt you carry will have an impact on the amount of mortgage money you qualify for. As a Realtor, I've got a list of 2 or 3 very good mortgage reps I'd be happy to refer you to.

FHA down payments are currently at 3.5% but I've heard it is possible it will rise to 5% in the not-so-distant future. There is also a strong possibility that the 1st Time Homebuyer Tax credit will be extended into the early part of next year which should help you.

If you'd like to email me, I'll reply with the names of the mortgage reps I use and you can get a pre-qualification from them free of charge. Then you'll have a much better picture of how possible home ownership is for you at this time.

Best of Luck,
Barbara L Smith
Weichert Realtors
PA/NJ Licensed Realtor
cell/text: 609-980-7593
email: BarbSmith321@comcast.net