Re: where do I start? - First Home Purchase...
before you apply, you might want to obtain yoru credit report and make sure its kosher (nothing on it that shouldnt be).
get together your W-2's or 1099's tax returns from last year and the year before.
get your bank statements together.
for a mortgage payment, take the price of the home you want to purchase, divide by 1,000 and multiply that nuber by 6.
that will be your principal and interest payment assuming a 6% rate.
add that number to your monthly expenditures (only the ones that show up on your credit report) and divide that number into your monthly income. make sure thats below 50%, if not, buy a lower priced home.
ex:
Purchase price 100,000
p&i = 600
monthly CC bills and auto loan = 400
monthly income = 4300
1000 / 4300 = 23%, < 50%. so its good.
thats called your debt ratio btw.
if you wanna know anything else, pm me. i can write more for you later, but im about to fall asleep.
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