To determine your maximum mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.
The front ratio is the percentage of your monthly gross income (before taxes) that is used to pay your housing costs, including principal, interest, taxes, insurance, mortgage insurance (when applicable) and homeowners association fees (when applicable). The back ratio is the same thing, only it also includes your monthly consumer debt. Consumer debt can be car payments, credit card debt, installment loans, and similar related expenses. Auto or life insurance is not considered a debt.
A common guideline for debt-to-income ratios is 33/38. A borrower's housing costs consume thirty-three percent of their monthly income. Add their monthly consumer debt to the housing costs, and it should take no more than thirty-eight percent of their monthly income to meet those obligations.
The guidelines are just guidelines and they are flexible. If you make a small down payment, the guidelines are more rigid. If you have marginal credit, the guidelines are more rigid. If you make a larger down payment or have sterling credit, the guidelines are less rigid. The guidelines also vary according to loan program. FHA guidelines state that a 29/41 qualifying ratio is acceptable. VA guidelines do not have a front ratio at all, but the guideline for the back ratio is 41.
Example: If you make $5000 a month, with 33/38 qualifying ratio guidelines, your maximum monthly housing cost should be around $1650. Including your consumer debt, your monthly housing and credit expenditures should be around $1900 as a maximum
Licensed Real Estate Salesperson
Prudential Douglas Elliman RE
1995 Broadway New York, NY 10023
(646) 312-9873 (cell)
Please feel free to contact me directly @ 917.215.5300
Licensed NYC Real Estate Salesperson
For finding a buyer's agent I would suggest you go to the Find a Pro tab above, put in New York, NY and see the top people that come up. Call a couple and see if you click.
Halstead Property, LLC
don't feel pressured to simply interview a couple of Realtors and choose one, the differnece between an average one (Poor quality) a good one, and a great one is hugely significant both on the price you'll end up paying and the service you'll get both dring the transaction and beyond.
I wish you all the best and happy house hunting !
There are a few things that you should look for in a buyers agent.
1) Open, honest, follows the law
2) Smart - they are the ones that need to do your deal and you need them to be smarter than the others. Now, by smart, I mean quick, intelligent and understands the business (done a lot of deals, understands the levers), and not slick. Slick only causes issues. Smart creates a smooth deal and heads off issues before they happen/i.e. controls the deal. You want a smart deal, and your deal controlled.
3) Acts as a true liaison. Deals are hard to close these days, and understanding what are the levers that need to be pushed with out pissing anyone off is critical. There is always something that happens and that agent needs to understand the steps, the players, gets misteps corrected, and play in the sandbox well with others. And, if necessary will do other people's jobs to get the deal done (being a problem solver and willing to roll the sleeves up and get dirty if needed). Importantly, the agent is the center piece liaison, proactively watching as things move through the process and knows when to push the lever needed to ensure that the deal is smooth...
4) Your best interests come first. FIRST. Not second to their social life, their income, their kids, their time. They listen to what you are looking to do, and provide intelligent feedback and advice that helps you.
5) Que se hablan espanol - al menos un poco. Afterall, it is Washington Heights and it will make showings and getting information from supers a lot easier. I lived in Latin America for about 11 years, and I love it in Washington Heights. Looking at me you'd never know I speak (Caribbean) Spanish, but it allows me to get a lot of information from folks in the buildings as it is a great icebreaker.
Please find attached an interview guideline for you that may help as you interview agents http://theapplepeeled.com/buyers/how-to-choose-a-broker-the- Although this is geared to folks who are trying to sell their properties, it has some questions that might be interesting for you as you move along interviewing agents. Others are:
1) How many deals did they do this year? How many deals did they do last year?
2) What was your most difficult deal this year and why? How did you solve the issues in the deal?
3) Give me an example of having to work with a difficult team member, how did you over come the issues that that team member presented (i./e. buyer's attorney, buyer's broker etc.)
4) How is your referal business? Of the deals that you did this year, how many were referals from previous deals that you did (not friends, but deals that they did)? Can you provide me with three people as referals who you managed the buyer side of the deal that I could speak to?
5) Give me an instance of how you are proactive in solving issues before they happen in a deal?
Finding the property in many ways is the easier part, making sure you have the right person on your team who makes smart deals and can keep it togehter is the tougher part of it...and it is really when the hard work starts.
Good luck on your interviews! And if you have an questions, or need a more lengthy interview questionnaire feel free to give me a call.
Bond New York
Whatever you do you want to go with an agent that can give you time and also be honest and upfront with you. Also what that has the ins and outs on contracts. Call me if you need further help 212-862-9608 Ex. 104!
25 Hudson Street
New York, NY 10013
this will help you on where to look and how to interview any agents you find before you hire them!
I have spent a lot of time up in Washington Heights first as a singer at 181st & Ft. Washington at a church job and then as a real estate agent. I have many friends up there and love the area. I'd be most happy to help you find a great deal. If you'd like to speak on the phone, I'd be happy to answer any questions you have. Take a look at my profile to see the testimonials. (They are not in the testimonial section.)
I am an experienced agent who works with both buyers and sellers.
I invite you to contact me to discuss how I will truly be an asset to you during your home purchasing process.
My contact information is listed below.
Licensed Real Estate Salesperson
A.C. Lawrence & Company
228 East 45th Street, NY, NY 10017Â
The home buying process should be memorable, exciting and FUN. It's my job to make that happen and to make sure you are happy. I take the burden off of you from start to finish.
I've lived in the heights for 10 years and my company exclusively deals in this neighborhood. If you want to talk specific strategy email or call me.
Stein-Perry Real Estate
819 West 187th
I live in the neighborhood so I'm very familiar with what is on the market here. I love to work with both buyers and sellers and usually work with first time buyers so I'm very good at explaining what to expect every step of the way. Also, I have the time necessary to give you undivided attention as I do not work with too many people at any given time. You can find out more about me at http://www.corcoran.com/nbrennan and feel free to call me if you would like to speak personally.
The Corcoran Group
I would be happy to assisting you finding a great deal! Feel free to contact me by phone or e-mail.
Looking forward to hearing from you!
Licensed Real Estate Salesperson
102 Fulton Street
It's great that you know what your looking for. As your buyer's agent I will make the transaction as smooth as poosible. I work with a partner as well, so you get 2 agents as compared to just 1. Communication is key and we excel at that. Call now to set up an appointment. We walk clients through the entire process step by step.
Look forward to speaking with you...
Exit Realty Search
Check out my listings. http://www.corcoran.com/nrafello I live and sell in the Heights. :)
Nick Rafello, V.P.
The Corcoran Group