How Much Can I Afford To Borrow for a South Hudson NH Mortgage?
Your credit history, income, the size of your down payment, your employment and residence history are all factors in how much mortgage you can borrow. Be sure you are cautious when you get a mortgage because the amount you are able to borrow can exceed the amount you can afford.
What Are My Upfront Costs?
Some costs associated with buying a Hudson NH home start to appear before you even make a payment on your mortgage. These include:
Mortgage Application Fees
When you apply for a mortgage there are always fees. Application fees include service fees, which can be flat fees, or they can be a 1-2% of the total purchase price. Application fees also include the appraisal cost, and credit report fees. They may be worked into the total closing costs, depending on the company you choose to work with.
Earnest Money is an initial deposit to be paid into an escrow account once your offer is accepted. This is also known as a “good faith deposit” which may influence the seller's decision on whether to accept you. The more you put down, the more serious you will appear to the seller.
You can get better mortgage rates by having a larger mortgage down payment. Down payments range from 0% to 20% or more of the total cost of the South Hudson NH home you decide to purchase. Some people put down 20% in order to remove the cost of the Mortgage Insurance Premium. Paying mortgage points up front can also help lower your pa
Final closing costs typically range from 2% to 4% of the total loan amount. Sometimes closing costs can be rolled into the mortgage loan amount which means you can just pay it as you are paying your mortgage. The other option is to ask the seller if they are willing to pay some of the closing costs in your offer.
Closing costs can include:
- Mortgage Application Fees
- Mortgage Points
- Title Insurance and Title Search
- Escrow Deposits
- Attorney’s Fees
- Inspection and Surveys
- City Recording Fees
Don’t let the long list of fees worry you because they are all paid at closing and can be estimated by the lender upfront to give you an idea of what will be needed.
Home Ownership Expenses
Owning a South Hudson home requires financial commitment far beyond your monthly mortgage payment. You will also be required to pay your mortgage insurance, home insurance, utilities, repairs, and your property taxes. Make sure you take all of these costs into mind when you are asking yourself how much you can afford to borrow when you make the decision to buy your new home. It is crucial that you realize all of these costs before you decide to take out a mortgage.
Planning And Saving Tips
If you are still saving for your new home, here are some helpful tips for you:
- Maintaining a reliable and regular income improves your standing with lenders
- Consistently paying your bills and limiting your monthly debt helps improve your credit score
- Saving for a higher down payment can lower APR and payments
- Combining your stated income with a partner or spouse can be to your advantage
- You will want your mortgage payments alone to be less than 28% of your income
Building your finances and your credit rating before you buy of South Hudson NH home will help you to afford more when you decide to purchase. Also, it can help you compete better with other buyers for the home that you want, as well as making it easier to handle the costs of buying a home. This will make owning your new home easier to manage!
For more information on buying a South Hudson NH home for sale give our agents at a call at Harmony Real Estate at (603) 883-8840. We would love to help you find your South Hudson NH dream home!