Buyer's Tips  
 
Getting Started
Before you start looking for a property you should ask yourself a few questions: Here are a few tips to help you get organized:
How much property can you afford?
Simply put, you can afford a property that costs as much as the largest monthly mortgage payment you qualify for.

A quick way to estimate the size of mortgage you qualify for is to take your gross monthly income (that's before taxes and other deductions) and multiply it by .28. This works out to just over 1/4 of your gross income.

Mortgage companies use something called qualifying ratios to determine how much they'll lend you. Most mortgage companies use either a 28/36 ratio or a 25/33 ratio. The first number in each pair is the percentage of your gross income that the lender would consider acceptable as a monthly mortgage payment (i.e. if you make $3,000 per month, 28% of that is $840 per month).

The second number in each pair is used when all debt payments are considered, not just the mortgage. (i.e. if you make $3,000 per month, but also have a $250 a month car payment, 36% of $3,000 is $1,080, minus the $250 car payment equals $830).

As you can see, in this example the numbers work out to be almost the same. Obviously if you have more debt you would qualify for less.

To quickly determine your own Loan Affordability, check our Loan Affordability Calculator!

Why you should work with a Realtor?
Working with a professional Realtor to buy your home is a good idea for several reasons:
Choosing a Realtor
Searching for your dream property can be a time consuming experience. Working with a professional Realtor will make the process much more efficient.

Since most people spend a fair amount of time with their Realtor, it's important to choose a Realtor you feel comfortable with, and one who is responsive to your needs. The following questions will help you decide if a particular Realtor is right for you: If the answer to most of these questions is "Yes" - you've found yourself a great Realtor.

If you find yourself answering "no" to many of these questions, or to any individual questions that are important to you, you should keep looking until you find a Realtor you feel comfortable with.



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