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Today we’ll discuss the four major things that affect your buying power in North Jersey.
- Your credit score will obviously be a major factor. You need to be in the high 600’s or low 700’s in order to qualify for a good loan.
- Prepare to make a sizable down payment as well. If you don’t pay at least 20%, you will be stuck with private mortgage insurance payments, which will hurt your buying power over time.
- Your debt to income ratio will be an important factor for the bank. They want to know what you make compared to what you owe.
- Your other assets will also be examined. These are things like investment properties, businesses, or other forms of income you have.
I think that this is a great year to buy a home. Interest rates are very low but they are still rising. You have an opportunity to save thousands of dollars over the lifetime of a loan right now. If you want to set up a consultation to talk about your buying power and what you might be able to afford, please don’t hesitate to contact me.
I look forward to hearing from you!
