Lehigh Valley homes, Lehigh Valley for sale by owner, Lehigh Valley real estate, Lehigh Valley for agent, Lehigh Valley realtors, Lehigh Valley investment properties, Emmaus homes, , Emmaus for sale by owner, Emmaus real estate, Emmaus for agent, Emmaus realtors, Emmaus investment properties, Bethlehem homes, Bethlehem for sale by owner, Bethlehem real estate, Bethlehem for agent, Bethlehem realtors, Bethlehem investment properties, Whitehall homes, Whitehall for sale by owner, Whitehall real estate, Whitehall for agent, Whitehall realtors, Whitehall investment properties, Easton homes, Easton for sale by owner, Easton real estate, Easton for agent, Easton realtors, Easton investment properties, Allentown homes, Allentown for sale by owner, Allentown real estate, Allentown for agent, Allentown realtors, Allentown investment properties, Coplay homes, Coplay for sale by owner, Coplay real estate, Coplay for agent, Coplay realtors, Coplay investment properties, Northampton homes, Northampton for sale by owner, Northampton real estate, Northampton for agent, Northampton realtors, Northampton investment properties, Schnecksville homes, Schnecksville for sale by owner, Schnecksville real estate, Schnecksville for agent, Schnecksville realtors, Schnecksville investment properties, Alburtis homes, Alburtis for sale by owner, Alburtis real estate, Alburtis for agent, Alburtis realtors, Alburtis investment properties, Breinigsville homes, Breinigsville for sale by owner, Breinigsville real estate, Breinigsville for agent, Breinigsville realtors, Breinigsville investment properties, Orefield homes, Orefield for sale by owner, Orefield real estate, Orefield for agent, Orefield realtors, Orefield investment properties, Ironton homes, Ironton for sale by owner, Ironton real estate, Ironton for agent, Ironton realtors, Ironton investment properties, Walnutport homes, Walnutport for sale by owner, Walnutport real estate, Walnutport for agent, Walnutport realtors, Walnutport, investment properties, Catasauqua homes, Catasauqua for sale by owner, Catasauqua real estate, Catasauqua for agent, Catasauqua realtors, Catasauqua investment properties
Welcome

Richard Afflerbach
Realtor
1458 Countyline Road, Unit H
Huntingdon Valley, PA 19006
office: 215-376-4444
cell: 484-358-6021
rafflerbach@gmail.com
Serving the Greater Lehigh Valley

Helpful Info > Owning a Home    
How Much Home Do I Qualify For?

Income. Debt. Down Payment. Closing Costs. Two Years Income Tax Returns. Assets. Liabilities. IRAs. You want WHAT? Just what can I afford?

Buying a home in today s marketplace is a bit intimidating. And your new home purchase is likely to be one of the most important decisions you ve ever had to make. Usually it s one of the single most valuable assets you ll own.

Where to Start
Before you invest hundreds of hours searching--and to avoid any heartbreak if you find yourself unable to qualify for your dream home--sit down with a lender. Your lender can perform a simple verbal prequalfication in about twenty minutes and a full-fledged prequalfication in about 5 days.

Pre-qualification not only allows you to focus your search in the correct price range, saving a lot of wasted time and frustration, but it can also give you an edge when competing with other offers on a home that you find. If a seller is deciding between two offers -yours who has been qualified and another unqualified offer, they are much more likely to pick yours. Pre-qualification will also give you leverage when negotiating with a seller in a non-competitive atmosphere; it essentially makes you a cash buyer.

The amount of home that you qualify for will be determined by three key factors: your down payment, your ability to qualify for a mortgage and closing costs.

The Down Payment
Whereas a current homeowner can rely on equity from their home sale, a first time homebuyer is limited to the money they can save. The days of having to put 20 percent down on a home are in the past, although putting a large amount of money down definitely makes it easier to qualify for a mortgage and to get the lowest interest rates available. With the various programs that are available today, you can put as little as 3 percent down on a home.

Qualifying for the Mortgage
There are two basic guidelines that lenders use to determine what size mortgage you are eligible for:

  1. Your monthly mortgage payment of principal, interest, taxes and insurance (PITI) should not exceed 25 to 28% of your monthly gross income.  
  2. Your monthly housing cost (PITI) plus other long-term debt should not exceed 33 to 38% of your monthly gross income.
Specifically, most lenders will consider 4 key factors to determine your ability to qualify for a home loan:

Income This first element can include not only your gross monthly income and secondary income (commissions, bonuses) but also your history of employment, stability of income, education, even potential for future earnings.

Credit History -- This encompasses your history of debt repayment, total outstanding debt, highest balance, and your highest monthly debt balance.

Assets Your assets consist of cash on hand, savings and checking accounts, CDs, stocks, bonds or any other type of liquid asset.

Property The home you are planning to purchase will be appraised to determine the market value. The estimated value must be sufficient to secure the loan. Lenders will loan you no more than a certain percentage (usually 95%) of this value.

Closing Costs
Keep in mind that in addition to your down payment, you will also be responsible for paying fees for the loan and closing costs. These will be required at the time of closing unless you qualify and choose to have these included in your financing.
  • Closing Costs generally will range between 2 percent and 6 percent of the mortgage loan, depending on the loan and lender. You will be provided with a "Good Faith Estimate" of closing costs so you can know what to expect.  
  • "Points", which are one-time charges equal to one percent of your loan amount, may be required by your lender at closing.  
  • Your closing agent will charge a fee at the close of the sale.


** To request more info, please fill out the following form:


Contact Information:
First Name *
Last Name *
Phone *
Email *
Comments
 



Helpful Information

Selling Tips
Buying Tips
For First Home Buyers
For Sellers
Dream Home Finder
No Obligation Consultations
Free C.M.A. Request
Seller Assistance
Current Mortgage Rates
Real Estate News
Useful Links
Buying Your First Home
Owning a Home
About interest rates
Attention: FSBOs
5 Secrets for Buyers
Mortgage Advice
7 Selling Mistakes
Moving Tips