Buying Your Farmington Hills Home-How Much To Borrow

Buying Your Farmington Hills Home-How Much To Borrow

The “rule of thumb” regarding loans is that your monthly housing payment such as the taxes, bills, insurance, mortgage, etc., should not be more than 28% of your income that you receive every month. When it comes to FHA loans, the balance of ration might be higher. The question that remains is, “How much do I need to borrow when buying your Farmington Hills Home?”

Here’s what you should focus on: it all comes down to “down payment”. The higher the amount you have saved, the easier it will be to get a mortgage loan for your Farmington Hills home.

Confused?

Let’s clear this up for you. Following is some pertinent information that all homebuyers should know about before buying your Farmington Hills home:

Counting Your Savings

As said earlier, down payment plays the biggest role in the home buying process. If you have 20% down payment saved up, then you don’t have to worry about private mortgage insurance. Let’s say that you saved around $20,000 for the down payment. If  the home in Farmington Hills, costs $100,000, then you are building equity from the start. However, if the asking price is higher than this, then you will be charged a PMI anywhere between 0.25% and 2%.

All in all, you will be borrowing less if you have the 20% down payment or more. Moreover, the lender will be more open to giving you a loan and at a low interest rate when buying your Farmington Hills home.

Debt

When calculating the monthly payments, factor in your debts too. Aim for a house that will cost you less than 28% of the monthly income. This is because you will be paying down your debts, and any missed payment might result in a penalty

 Kinds of Houses Are You Looking For In Farmington Hills?

What are your future plans?

Do you see yourself having a family?

How many kids do you plan to have?

What are your aspirations regarding your job in Farmington Hills?

How is your lifestyle?

Questions like these give you a clear perspective of what kind of house you should buy in Farmington Hills. The price of the house increases depending on the neighborhood and the facilities offered within the community. The number of rooms, backyard, driveway and garage also play a role in the price range. Set a margin and tell your real estate agent to stick to it. Be realistic about your needs.

Be Mindful When Borrowing

Don’t bite more than you can chew! Financial stress is the worst and can quickly lead to depression. So, look for a house in Farmington Hills that falls under your budget and amounts to monthly payments you can easily pay.

Now you understand why it is so important to assess your financial situation before making this move. Look for a house that you think you can spend the next 10 to 20 years in. Changing houses within the span of 5 years will financially bankrupt you. If you want to buy a home for sale in Oakland County, Michigan, that falls under your budget and has all the features you need, then visit Homes2MoveYou.

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“Must” and “Lust” – Don’t Overspend When Buying a Home for Sale in Farmington Hills

“Must” and “Lust” – Don’t Overspend When Buying a Home for Sale in Farmington Hills

We are sure that you are familiar with the battle of needs vs. wants… what we like to call must vs. lust. It’s a battle where you spend a lot of time fantasizing about the changes you can make in the home for sale in Farmington Hills, Michigan you just bought and then act on them without giving your needs a second thought. It’s time you stopped making frivolous purchases for your house.

However, in order to satisfy your inner shopper and give you a way to let all that new-house excitement out, we have come up with a few tips to keep you in line.

Most first-time home buyers find themselves in a situation where they are torn between the responsibility of taking care of a house repair or buying something that they don’t actually need. Here’s how the inner conversation usually goes:

“This 50″ LCD screen on sale is once in a lifetime deal. Maybe, if I schedule the plumbing repair for the next month, I can include this LCD in my budget.”

Never do this! Plumbing and structural repairs are the ones that should be fixed immediately or you might find yourself paying thousands of dollars for something that could have been easily taken care of by tightening a bolt.

So, follow the below tips to put your needs first when shopping for the house:

Make a List with All Your wants in a Home for sale in Farmington Hills

Now that you have paid the real estate agent his commission for the home for sale in Farmington Hill, Michigan he bought you, you will find yourself short of funds. So, before you set foot out for shopping, create a wish list. Once the list is made, narrow down ten repairs and items that are necessary.

The wants that you have prioritized automatically become your needs in a Home for sale in Farmington Hills, which bring us to our next point:

Highlight Those Needs that are Important

Take the “top 10” list and now prioritize the items on it according to what requires immediate attention. Separate the DIY jobs from repairs that require a professional’s hand.

For example: you can paint walls on your own but you cannot replace the broken shingles on the roof.

Obviously, the latter repair requires attention now, as it can cause damage to the house during a heavy downfall. The former can be done anytime, when you are settled in.

Keep the List on You When Shopping

It’s possible you might get sidetracked by something you see on sale in the store. The list will work as a reminder that you are on a budget. This way, you will think twice before making a frivolous purchase.

So, are you ready to hire a real estate agent to find your dream house? Use these tips wisely and you will be able to fulfill your wants sooner down the line. If you want to buy a home for sale in Farmington Hill, Michigan that falls under your budget and has all the features you need, then visit Homes2MoveYou. Get in touch with a real estate agent and start seeing houses in areas of your liking.

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