Boise Idaho Real Estate Tips

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Archive for home buying

Home Buyer Tax Credit

August 20, 2009 at 7:43 pm · Filed under Buying and tagged: , ,

It is clear that the $8,000 home buyer tax credit has helped the real estate market and get first-time home buyers into their new house but time is drawing near for it to end. Don’t get discouraged yet!  Stay tuned because there is a strong possibility that the credit will be offered for several more months.

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Don’t Neglect the Neighbors

July 12, 2009 at 1:22 pm · Filed under Buying and tagged: , ,

People come in all types, even in nice neighborhoods. Depending on your goals and family size you may wish to check out the neighbors and see what they are like. Are they friendly? Are their homes well maintained? If you have children you may want to check the sex offender registry. Live in an area where you feel safe and don’t be afraid to make some new connections.

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Boise Flood Plain

July 9, 2009 at 1:22 pm · Filed under Buying and tagged: , , , ,

The environment is always changing and it has been a very long time since Boise has seen a flood but recent news and events shows that cities that normally don’t flood have been. Boise is no exception. Remember the Boise River runs through the center of town and there are a lot of homes built next to the foothills. With the right conditions you can see flooding occur. Check to see if the home you wish to buy is in the flood plain and if so what insurance would cost.

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Buying Around Vacant Lots

July 6, 2009 at 1:20 pm · Filed under Buying and tagged: , , ,

Many people buy a home because they have a nice view. Could this change in the future? What uses are possible for nearby undeveloped land? Could they put in a new road or commercial development that is an eyesore? These are serious things to consider when buying a home so don’t neglect them. Boise real estate is a fast growing business and it doesn’t take much to find homes where people probably wish they never bought because of one or both of the above reasons.

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Destinations

July 3, 2009 at 1:19 pm · Filed under Buying and tagged: , , ,

When buying a home consider destinations. Where will you and your family be going most of the time? Is it easy to reach those places? If schools, shopping, grocery stores, work are important to you then see how easy it is to reach those places during the hours you normally would.

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Where to Buy a Home

May 12, 2009 at 1:24 pm · Filed under Buying and tagged: , ,

Price, price, and price seem to be the major factors in determining where and what home to buy.  When it comes to buying Boise real estate it is important to take into all the considerations when setting out to buy a home.  One of the major ones is destinations.  Where are you going to be spending most of your time? Many people every day commute from Nampa to Boise, why? Because they were able to get more home for their money.  However, it had a cost associated to it.  When buying a home you really should consider how your time and money will be spent on that new home.  Will you be driving to and from work each day, losing 1-2 hours in the car.  Will your monthly fuel bill go from $100 to $300?  Will your blood pressure go from normal to above normal?  These are honest considerations and should be examined.  They all have a cost and it is important to know the bottom line when making a home buying decision.  So before you buy Boise real estate or any other real estate for that matter make sure you understand the bottom line along with the pros and cons.

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How Much Mortgage can You Afford

April 25, 2009 at 11:48 am · Filed under Home Loan and tagged: , , , ,

How Much Mortgage Can I Afford?

Keep in mind that just because you qualify for that amount, it does not mean you can afford to be comfortable with those monthly payments. You need to consider your particular circumstances and your future financial needs and goals.

How can I calculate how much mortgage I can afford?

As a rule of thumb, many people estimate they are able to afford a mortgage of 2 to 3 times their household income. For example, if you annual income is $30,000, you might be able to afford a mortgage of $60,000 to $75,000:

$30,0000 X 2 = $60, 000
$30,000 X 2.5 = $75,000
$30,000 X 3 = $90,000

Keep in mind that just because you qualify for that amount does not mean you can afford or be comfortable with those monthly payments. You need to consider your own circumstances and your future financial needs and goals.

What do lenders look at when deciding whether or not to finance a mortgage?

Lenders look at a debt-to-income (DTI) ratio when they consider your application for a mortgage loan. A DTI ratio is your monthly expenses compared to your monthly gross income.
Lenders consider monthly housing expenses as a percentage of income and total monthly debt as a percentage of income. Both ratios are important factors in determining whether the lender will make the loan.

What do lenders generally require?

Lenders usually require the PITI (principle, interest, taxes, and insurance), or your housing expenses, to be less than or equal to 25% to 28% of monthly gross income. Lenders call this the “front-end” ratio. In other words, if your monthly gross income is $10,000 or $120,000 annually, your mortgage payment should be $2,800 or less.
$10,000 X 28% = $2,800 – maximum monthly housing costs

Lenders usually require housing expenses plus long-term debt to less than or equal to 33% or 36% of monthly gross income. Lenders call this the “back-end ratio.” In other words, if your monthly gross income is $10,000, the combination of your mortgage, $2,800, and other long-term debt should be no more than $3,600:

$10,000 X 36% = $3,600 – maximum total debt

If your debt-to-income exceeds these ratios, talk to your lender about your options.

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