# 5 - Your Buying Power

Before You Look at Your First HouseExperienced home buyers know that one of the first-steps in beginning a successful search for a new house is taking a hard, objective look at finances. Determining how much money you can dedicate to the purchase of your new house affects almost every aspect of buying a new home - including how we write the offer (request Report #13 "Writing the Offer"), which mortgage programs (request Report #22 "Loan Programs") you will qualify for, shopping for the best mortgage loan (request Report #24 "Mortgage Shopping") and which homes are truly in your price range.

Here are the questions that each home buyer should ask:

How much cash is available for a down payment? The amount you have available for a down payment will affect what types of loans for which you can qualify. Learn more - request Report #15 "Your Down Payment".
Am I ready to write a check for the earnest money? Earnest money is a cash deposit made to a home seller to secure an offer to buy the property. This amount is often forfeited if the buyer decides to withdraw his offer. Learn more - request Report #14 "Earnest Money"
How much additional cash will be available to pay for closing costs? There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract. Learn more - request Report #17 "Closing Costs".
What is the maximum monthly mortgage payment that I can afford? Most lenders will use the 28/36 rule (see below) to determine the maximum mortgage payment you can afford.

The 28/36 Rule
No more than 28% of your gross income can be applied to your mortgage, real estate taxes and insurance. And no more than 36% of your gross income can be applied to your mortgage expenses plus your regular debt expenses (car payments, credit cards, other loans, etc.).

For all your Real Estate needs... Call

Mark W. Slagle, Owner/Broker

Twin Lakes Realty & Auction

865-382-1670

mark@markwslagle.com

Office: 865-397-3540
Firm # 5270

Contact Information

Twin Lakes Realty and Auction

868 S US Hwy. 92

Dandridge, TN 37725

Office:(865) 397-3540

MARK W SLAGLE Owner / Broker 865-382-1670 SRES, GRI, e-Pro, ABR

Twin Lakes Realty and Auction is licensed in the state of Tennessee. The Fair Housing Act prohibits discrimination in the sale, lease, or rental of housing, or making housing otherwise unavailable because of race, color, religion, sex, national origin, familial status, or disability. By registering on this website (providing your name and/or contact information) you are making an inquiry and are granting permission for an agent to contact you via telephone and/or email, regardless if you are registered with the national, state, or other Do Not Call list. The data relating to real estate for sale on this website is being provided for the consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties the consumers may be interested in purchasing. This information is updated daily, however, some of these properties may subsequently have sold and may no longer be available. The Real Estate Broker providing this data believes it to be correct, but advises interested parties to confirm the data before relying on it in a purchase decision. Some or all of the listings on this website may not belong to Twin Lakes Realty and Auction.