You must be more than happy

No matter what the task or goal, stay focused and should you feel that new representation is in order. Do so in writing as well as promptly as possible to avoid any complications from the agreement you signed. Just 'cause someone has their license to sell homes doesn't mean they are good at what they do. Ask questions, get it in writing, make sure your getting what you want-"Steering" is illegal. Don't let a sales rep guide you-YOU guide them on where you want to live.

Quitting is the easy part.  What comes after is far worse than the pain you were in when you decided to quit. When you quit you are looking for the immediate gratification of the pain stopping, looking for the feeling that you are done and don’t need to keep going on;  and if feels good!  It feels better than anything else; for about 30 min, but what comes next is far worse. Your brain goes into overdrive.  The questions start to come, what could I have done differently, or asked for help on, or just had some more patience. See quitting is often a permanent solution to a temporary problem. The mind or body is saying that you don’t deserve this, or that it is too hard, or why does this only happen to me. When in fact, it happens to everyone.  The comfort zone is a strange thing.  It allows you to exist and doesn’t want you to push further.  When people get out of their comfort zone the first instinct is to quit; they say this is too hard. When in fact they haven’t figured out an alternative; many times this is just the beginning on the path to greatness.

Feel free to review my LinkedIn profile: as I am not a fan of broadcasting my sales details on the internet...which will be the topic of my next blog.




Mortgage debt to Income

Debt-to-Income ratio is what lenders use to qualify buyers for a mortgage and  loan approval.  It gives an indication  of debt that a  borrower is obligated to versus their income.

Monthly debts are determined by adding the   recurring  debt payments such as monthly housing costs, car payments, minimum credit card payments, personal loan, student loan(s), child support, alimony as well as other items.

When you divide the monthly income into the monthly debt, you arrive at a percentage of the monthly income.  Lenders  look at two different ratios, the front-end and the back-end.

The front-end ratio is the proposed total house payment including principal, interest, taxes, insurance, PMI & HOA fees.  Lenders don't want these expenses to be more than 28% of the monthly gross income. 

The back-end ratio includes the same items that are in the front-end including other monthly obligations like the ones mentioned.  Lenders want to see this not to exceed 36% to 43% of your monthly gross income.  Borrowers obtaining an FHA mortgage might also be allowed an even higher  ratio.

If a borrower had $8,000 monthly gross income, their proposed house payment should not exceed $2,240 or 28% of their monthly gross income.  Then, their house payment and monthly debt should ideally not exceed $2,880 or 36% of their monthly gross income. 

For the sake of an example, let's say that their monthly debt was $900.  That would only leave $1,980 for the maximum house payment.  The monthly debt became a limiting factor affecting the house payment.

While determining whether the buyer qualifies for the mortgage, it could affect the interest rate.  Having good credit and  ratios can result in being approved for a mortgage. If the debt is on the upper side of an acceptable range, the lender might charge a higher  rate for the addition risk. A lending professional can assess your situation and give you a solid forecast of what price home you can afford and the rate you'll pay.

These are important to know before you start looking at homes so your ready to make an offer.  All lenders are not the same.  Call me to get a recommendation of a mortgage professional, keep  in mind that a bank & a mortgage broker have different resources, ask me and I'll explain.

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