hi this is Audrey Whittington with realtor.com and welcome to the home
buying process from A to Z today we have Brad Sivert with us and he's the general
manager and head of mortgage for realtor.com. So Brad, thanks for joining
us. Thanks for having me! I think the first thing we're going to talk about
it's a little bit maybe about how you come to this personally like what are
your thoughts about the mortgage process you know how has it affected you and
that kind of thing. Yeah, I mean, the mortgage process is key to anyone who's
trying to buy a home and get into their dream home. It is the part of home buying
that is probably the most stressful yeah and the least light and if you actually
go back to the latin definition of the word mortgage
it means note until you die so the definition of it's great is already
negative to begin. Yeah. But for me it's something that really holds true
it's it's the unless you're independently wealthy it's really the
gate that you need to get you into your dream home it's true everybody needs a
mortgage right I mean very few people pay cash out right and that's that so I
don't know you probably don't know the percentage off the top of your head of
how many people get a mortgage but it's over 80% of people on a mortgage okay
good thank you yeah all right so some of the factors to consider when you're
looking at a mortgage like what should you consider what do you look at yeah I
mean the first thing really is to baseline yourself and to understand to
know what your buying power Riggins and that really comes down to your
portability or your budget these are all interchangeable terms that you actually
look at sure and there's a couple key factors that you're looking at there the
first is how much down you're gonna make so what down payment you're gonna make
on this house and then secondarily what the monthly payment will be because the
monthly payment is what you're actually enough to pay every single month sure
the down payments a one-and-done thing so these scenarios plus where you kind
of fit in your life cycle they're all would make up the major components of
knowing how much what range you should be looking at or home well I think that
makes sense because some people look at it that they've saved the 20% and that's
that they're good but they're not really thinking about all the factors and all
the things that go into make up a payment of renting versus buying and
some people figure well I just got a new job I'd like to buy a home but they're
not really factoring in that they need the down payment
that's correct okay so how it was what are some of the tools that we can use to
figure out what and we have Ward sure sure so a lot of websites out there have
affordability calculators and what the affordability calculators really do is
they take the two main components that lenders are looking at what your loan to
value ratio is and your debt to income ratio and they try to kind of chew NIH's
it in a way that you can understand all right so for example if you make sixty
thousand dollars a year or five thousand dollars a month
the ratio that's used for debt to income on an average is thirty five percent so
based on that it's suggesting you should be buying a home with a monthly payment
of one thousand seven hundred and fifty dollars and assuming you put 20% down it
does the reverse math this is a two hundred fifty thousand dollar home so
that's really the range you should be looking at based on the income that you
make oh that's really helpful and what about the debt well you have to consider
the debt and this is why people like affordability calculators so much it
gives you many ways to figure out what the best scenario for you how much down
payment you want to make what debts to include in there because when you take
it to the next step of talking to a lender they're gonna run all these
scenarios for you right so it's better for you to be in control to really know
what numbers are impacting your affordability or your buying power
however you want to look at because they're gonna look at all those factors
right they're gonna look at everything and for them it's a risk reward kind of
ratio right and so they're looking at everything more often than not from a
conservative life so part of what we're doing here is we're budgeting really
right so we're using these tools to budget so tell us a little bit about how
that process works yeah everyone has a different budgeting kind of methods that
they use yeah some people plan and save for the down payment over time others it
becomes more of a emotional decision like I'm absolutely in love with this
house I'm gonna do everything in my power to get it yeah and so people with
different budgeting tools but you know simple things like affordability
calculators and rent versus buy calculators that exist really simplify
it for you in a matter of minutes to kind of it at least levels that use to
where you should be looking so that you're not living far out of your means
all right so really if you're heading to realtor.com in some
ways you might want to go to the calculator first to see so you don't
waste your time looking for a house candidly you can't afford or houses that
maybe you can afford that are a little more expensive yeah and one of the keys
when using affordability calculators like ours is knowing the difference
between how much you can afford versus how much you should afford and so in a
market like this today is sometimes ends up being bidding that happens at the end
of buying an offer so if you can afford up to two hundred and fifty thousand
dollars and that's your max that you'll be able to afford yeah and you get to
the table and you make an offer for two hundred fifty thousand but then it comes
back at two hundred and sixty thousand yeah you kind of not really set up for
success so knowing how much you can afford it's kind of the maximum and you
should kind of live in that reign and the trade-offs you're making when you're
buying a home is where the home is sure well does it
location does have a nice yard is it in great School District how many bedrooms
does have how many bathrooms does that and just like everything in life you
have to weigh the pros and cons versus the actual cost everyone would love to
drive a Porsche but guess what you can't always afford one yeah I love this I
think that's a really important point that even though the affordability
calculator says 250 maybe you're smart to look at 225 and leave yourself a
little breathing room you might want to buy some furniture and as you point you
know you might get into a bidding war yeah well this was really helpful thank
you so much for joining us Brad alright this is Audrey Whittington with realtor
calm and thank you for joining us with the home buying process from A to Z we
hope you'll check out some of our other videos
For more infomation >> How Much I PAY at a Japanese Hospital on Japan's Healthcare System - Duration: 7:27. 
For more infomation >> Episode 3: How to Pick a Realtor: Team VS Solo Agent - Duration: 7:15. 
For more infomation >> What are the advantages of owning an investment property? | Property Management Gympie - Duration: 2:50. 
Không có nhận xét nào:
Đăng nhận xét