Financing for Your Emerald Coast HomeApril 25, 2014
Have you ever dreamt of investing in Fort Walton Beach real estate? Perhaps you are more interested in buying a Panama City Beach condo, or maybe your vision is a nice residential home in Destin? Whatever you real estate dream may be, more often than not your budget can become an issue.
If you are considering buying a home, the best thing you can do is take a close look at your finances BEFORE you start shopping. It is likely that lenders will be involved in the process at some time in your quest for home ownership, so why not start where they do?
Lenders often use the 28/36 rule to determine credit eligibility. The 28 refers to the percentage of monthly gross income that should be allocated towards housing and the 36 represents the total debt that you carry. Everything from principal and interest to taxes and insurances will fall under the 28% whereas your car, student loan and credit card payments will fall under the 36%. As long as your monthly debt does not exceed 36% of your monthly gross income you are probably in good shape to qualify for the loan from your first calculation.
Contact a RE/MAX Southern agent today for more help in the home-buying process.Â