Tools for a successful homebuying experience
FIRST TIME HOMEBUYERS A Guide to Decide If You Can Afford to Buy Step 1: Get Pre-Approved The only way to truly know how much home you can afford is to ask a lender. Getting pre-approved lets you know how much you can afford before shopping for your home. What to Know and Where to Find It: • Income: Stable income assures a lender you can make your monthly mortgage payment. • Debt: Add up auto payments, credit card payments, student loans, alimony, child support, and other. • Cash: Total assets, amount in checking and savings accounts, and other investments. Step 2: Determine Monthly Mortgage Payment Including Escrow Escrow is a third party account used to retain funds, including the property owner’s real estate taxes and hazard insurance premiums. Step 3: Understand Bills Associated with Homeownership Estimate that it will cost about one percent of the purchase price per year to maintain your home. For a $200,000 home, you should budget approximately $2,000 per year or approximately $170 per month
DENNIS PAPIERNIK
Mortgage Consultant direct: (630) 873-6342 dennis.papiernik@movementmortgage.com www.dennispapiernik.com NMLS: 197162 www.movementmortgage.com
for maintenance. Condominiums and co-ops will have regular maintenance fees. You will also have utilities, gas, electric, water, sewage, cable, telephone, insurance, property tax, etc. Step 4: Compare the Total Costs to Your Monthly Salary Subtract the total in Step 3 from your monthly gross income. Step 5: Test those Numbers for Six Months • Set up a new bank account. • Subtract your current monthly rent from your Step 2 total. • Deposit the difference in these numbers into the new bank account on the first day of each month. • After six months, determine how simple or straining the process turned out to be. Step 6: Establish Future Priorities and Plan for the Unexpected • What are your needs for the new home—appliances, furniture, lawn equipment? • Is a new car in your near future? • Do you plan to have children? • How long can you survive if you lost your job?
REAL ESTATE AGENT
Zip Realty Realtor Office: 630.123.1234 Cell: 630.123.1235 TopProducer@Realestate.com www.topproducer.com
Movement Mortgage, LLC is an Equal Housing Lender. NMLS # 39179 | 877-314-1499. Movement Mortgage, LLC is a "Illinois Residential Mortgage Licensee" by the "Illinois Division of Banking" Lic # MB.6760898. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. “Movement Mortgage” is a registered trademark of the Movement Mortgage, LLC, a Delaware limited liability company.