The Information on BUYING A HOUSE OR YOUR FIRST HOME (FYI ONLY)




This is just INFORMATION YOU just might need to have prior to purchasing a HOUSE/HOME (First Time or Whatever, et al)...now we at Best Buy Financial Services Company (TM) are in no way offering YOU any legal advice, acting as an ONLINE REALTOR and/or any Mortgage Company or Traditional Financial Company, such is "NOT" us period.


If YOU are like most people, YOU wanting to TAKE OUT A LOAN to buy/purchase a House/Home. But unlike the "BAD" debt that gets racked up on credit cards, a MORTGAGE in a LOAN worth taking. With each mortgage payment YOU own a little more of the house/home. If history is an indicator, the value of YOUR house/home will increase over time. And the interest YOU pay on the mortgage is tax deductible, too YOU just might wish to contact the LOCAL IRS OFFICE for more information on this matter concerning the actual amount of deductible interest, et al.





YOU should ask YOURSELF the simple question. How much can I afford? Mortgage Lenders we are NOT one, period, but we can PUT YOU ON THE RIGHT PATH TO THE BEST AS WE KNOW THEM FOR will typically loan YOU about 2.5X up to 3x YOUR your annual income, depending on YOUR other debts. But DON'T borrow so much that YOU'RE stretched to the limit each month.





Now here's how legitimate mortgage lenders see it: YOUR projected monthly housing/home costs (including mortgage payments, property taxes, and insurance) shouldn't exceed 28% of YOUR GROSS MONTHLY INCOME. (Gross is YOUR total income before any deductions for taxes.) These costs plus YOUR other LONG - TERM DEBT PAYMENTS, like car loans, credit car payments, and student loans shouldn't EXCEED 36% of YOUR GROSS MONTHLY INCOME.




Aim to squirrel away about 20% of the PRICE OF THE HOUSE/HOME for a DOWN PAYMENT. If YOU can't muster that much, YOU'LL have to pay for private mortgage insurance, which protect the bank(s)/credit union(s) in case YOU can't make YOUR payments. If YOU can't afford the DOWN PAYMENT but have enough income to afford monthly payments, check out government-backed loans, like Federal Housing Administration 800.483.7342 (www.hud.gov/fha)


YOU'LL have to save more than DOWN-PAYMENT MONEY. Heaped on the down payment like YOUR LIFE DEPENDS ON IT such will have fees and closing costs, to the tune of about 3.2% to 6% of the amount YOU are borrowing.



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