Mortgage Qualification in the LBI Real Estate Market
- High Tides Digital Marketing
- Sep 30, 2019
- 2 min read
Mortgages and the Long Beach Island Real Estate Market
Buying Long Beach Island Real Estate
If you are looking to obtain a mortgage when buying a home in the LBI real estate market the steps needed to qualify for a loan should be high on the list of your research. The first step of any home search should be coming up with a plan of how much you can afford and how to pay for the home. Sometimes a loan makes sense and other times it makes sense to pay cash. You should also understand the best way to hold the piece of real estate (LLC, investment home, second home, etc) as this can impact the kind of mortgage you seek. Understanding the process for Mortgage Qualification in the LBI Real Estate Market can help save you time and focus on the right kind of house for you.
Mortgage Qualification in the LBI Real Estate Market
All banks and all loans will have different sets of criteria. Therefore a buyer in the LBI real estate market should speak with a lender to see what is needed for their specific qualification. That said, there are a few generalizations to go over. They are:
Debt to Income Ratio: A debt to income ratio is your total debt (credit cards, loans, car payments, etc) divided by your pre-tax gross income. This tells a lender how much you have left to put towards a loan.
Down Payment: The down payment is simply the amount of your own money that will go into the purchase. These funds must come from a traceable source like a bank account or a past sale of an asset.
Interest Rate: This is the cost to borrow money. A higher or lower interest rate can determine if it makes sense to borrow money and how much house you can and should afford.
Buying and Selling in the Long Beach Island Real Estate Market
There are some excellent buying opportunities in the Long Beach Island real estate market but only if the numbers make sense. A buyer has to understand their ownership costs and a big part of that is the loan. Without a clear understanding of your personal finances it can be difficult to complete the real estate transaction. If you have any questions about these LBI real estate misconceptions or about buying, selling or investing in the LBI real estate market please do not hesitate to contact me.
By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
