Helpful Borrower Information and Tips..

Determining how much “home you can afford” depends on several important factors including:

Your annual gross income. You can get a very rough estimate of your affordable home price range by multiplying your annual gross income by 2.5. For example, if your annual gross income is $50,000, you may be able to afford a home worth $125,000 (this varies depending on current interest rates, your debt and credit history).
Your credit history and score. Your credit can affect your ability to qualify for a mortgage and your mortgage rate. Before you shop for a house or a mortgage, find out what your credit score is by visiting www.annualcreditreport.com or calling (877) 322-8228. Be sure to do this only once a year because your score can be negatively affected if pulled too often.
Current mortgage rates. Mortgage rates change constantly based on the economic factors that affect the demand for mortgages among investors like Freddie Mac. You can track mortgage rate trends by following Freddie Mac’s Primary Mortgage Market Survey.
The amount of your down payment. You will have to make a downpayment of at least 5 percent of the home purchase price to qualify for a mortgage that meets Freddie Mac’s requirements. If you are able to put down 20 percent or more, you can avoid having to pay private mortgage insurance (PMI), reducing your monthly mortgage payment.
The type of home you are purchasing. If you are looking to buy a condominium, keep in mind that rates are typically higher for these loans and you’ll have to budget for the cost of your monthly condominium fee.
Your current lifestyle and future plans. You should consider your current living standards, as well as any future major expenses such as a wedding or college tuition. And, remember – buy what you can comfortably afford today, not five years from now.
Fees and closing costs. Remember to factor in the expenses and fees you will incur for a home appraisal, a home inspection and other professional services required to buy a home.

Key Ratios Lenders Use

To determine how much you can afford, it is helpful to follow the guidance and key ratios lenders use:

Housing Expense Ratio. Lenders recommend that your mortgage payment (principal, interest, taxes and mortgage insurance) be less than 28 percent of your monthly gross income.
Debt-to-Income Ratio. Lenders look to see that all your other debts (credit cards, student loans, alimony, child support, car loans and housing expenses) are less than 30-40 percent of your monthly gross income.

information retrieved from FreddieMac.com

661 VIA SANTA YNEZ, PACIFIC PALISADES, CA 90272

$1,499,000
Bedrooms: 3
Bathrooms: 2
Sq. Ft.: 1,821

Open House on Sunday, May 20, 2012 2:00 PM - 5:00 PM

Photo Tour

Listing # 12600523

11507 BRADDOCK DRIVE, CULVER CITY, CA 90230

$410,000
Bedrooms: 4
Bathrooms: 2
Sq. Ft.: 1,401

Photo Tour

Listing # 12601029

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Westside Properties is a full-service real estate boutique brokerage based in Venice serving the entire Westside of Los Angeles. We proudly represent the finest properties throughout the Westside.

We work as a team and combine our extensive real estate experience, powerful resources and connections to benefit you whether you are looking you buy or sell a home in today’s exciting and lucrative real estate market.

Call us now to get started on the road to buying or selling your next home. 310.459.8191 x366 or email mywestsidehomefinder@gmail.com

To preview the finest real estate and the best deals on the Westside of Los Angeles including Pacific Palisades, Santa Monica, Malibu, Brentwood, Bel Air, Beverly Hills, Westwood, Century City, Marina Del Rey & Mar Vista please visit our website: http://www.westsidehomefinder.com/ When you are ready to view the properties or just have a question, please contact us: 310.459.8191 x366 or mywestsidehomefinder@gmail.com

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