Posts
As a mortgage broker in Palm Beach County, I am often asked this question. When first time homebuyers are considering shopping for a home, they want to know how much home they can afford.
When I am asked this question, I reply.."how much are you comfortable paying every month?" This is the basis for deciding what price range to start searching in....not how much a mortgage calculator tells you that you can afford.
There are more expenses involved in owning a home than you may realize. When you first move in, you will be spending money on furniture, redecorating, cleaning supplies, vacuum cleaners, etc. All of these costs should be factored in to your budget. In addition, homes need upkeep....painting, replacing gutters, landscaping, etc. I would suggest that you factor in about $200 a month for these expenses.
You also need to consider taxes and property insurance. You can seach county records to see what tax bills are for homes in areas you are interested in. Where you live can affect these expenses. Also, don't forget to call your auto insurance company ..rates vary depending on the county you live in as well as your yearly commute miles. So if you move to the suburbs and have a longer commute, you car insurance bill could increase.
In addition, make sure you have at least 3 months of living expenses in an emergency fund.
Here's an example of how this proces works:
Monthly take home pay $3500
Car payment $300
Car insurance $100
Credit Cards $100
Groceries $300
Gasoline $150
Utilities $250
Entertainment $200
Maintenance $200
Savings $400
Total Expenses = $2000
Funds remaining for house payment ( including taxes and insurance) = $1500
Now you have a better idea of the price range you should be looking in. Assuming your research has shown the tax and insurance portion of the payment to be $300 per month, you have $1200 left over for the mortgage payment. Assuming a rate of 5%, and using an FHA loan putting 3% down, you would be looking at a loan amount of approximately $205,000.
Now it's time to make a call to a mortgage broker or loan officer to get prequalified. They will be able to give your more exact numbers based on your credit score and other qualifications. Most realtors will be reluctant to show you properties until you have been preapproved for a mortgage.
South Florida Mortgage Lady on Facebook
Sunday, November 22, 2009
Sunday, October 4, 2009
Alex Romano performs at the Howard Johnson Patio Bar
Nothing beats listening to some great live music while soaking up the ocean view and moonlight. Last night I had the pleasure of listening to Alex Romano and Kirk Green perform at the Patio Bar on the ocean in Deerfield Beach.
From soulful jazz to get off your feet and dance music, the crowd enjoyed the show until 11PM. During their break, Alex and Kirk mingled with the crowd and I had the opportunity to chat with them for a few minutes.
The duo plays gigs throughout the tri county area and are also available for private events.
Take a look at Alex's website for more information and some samples of her talented singing at
ARMusicFusion
From soulful jazz to get off your feet and dance music, the crowd enjoyed the show until 11PM. During their break, Alex and Kirk mingled with the crowd and I had the opportunity to chat with them for a few minutes.
The duo plays gigs throughout the tri county area and are also available for private events.
Take a look at Alex's website for more information and some samples of her talented singing at
ARMusicFusion
Saturday, October 3, 2009
Beachside at Deerfield Beach
I am lucky enough to live 2 blocks from the incredible Blue Wave beach here in Deerfield Beach, Florida. Just a few blocks south of Boca Raton, and about 15 miles north of Fort Lauderdale, this area of Deerfield Beach has something for everyone.
Shops and restaurants surround the famous S curve area of A1A that defines this local beach spot.
What are you hungry for?? Traditional raw bar seafood? Upscale dining? Burgers and beer? Sushi? Pizza? Ice cream? All of this and more within a radius of a few blocks.
Here's a sampling of what you'll find here at the S curve on Deerfield Beach:
Probably one of the favorite spots with locals and travelers alike - the Howard Johnson Patio Bar and Grill. Located just across the street from the beach, you can enjoy the view, great food and live music every day. Everyone is friendly, so expect to join in some lively conversation if you sit at the granite topped bar while enjoying your food and libations.
Right next door is Harpoon Louie's - enjoya late breakfast with a fluffy omelet made your way with a beach view and stay to enjoy the live Reggae band on Sunday afternoon.
Or try Oceans 234 - beachside with great food and killer Bloody Mary's. Choose to sit inside or out and sample the upscale menu. And did I mention the beach view??
Next is JB's on the Beach - a favorite spot for the Boca crowd and locals. Sunday afternoons are fun here - head to the granite topped tiki bar and enjoy great food and drinks while listening to live music. Hint: The fish tacos are awesome! From Harleys to Mercedes and Porsches and the occasional blue Toyota, this is the atmosphere at JB's.
If you're looking for a hot nite spot, JBs is the place to be after 6pm on Sunday evenings. Make sure to get there early to get a seat - this place gets packed fast. The place to be and be seen!
Across the street is Kahuna's - a small and happening place with a pool table and great live music. The smoked fish dip appetizer is a must. Enjoy it leaning on the surfboard table just outside the front door so you can people watch. Bring your dreadlocks :) Also great for some garage band music on the weekends.
On the other side of the S curve, you have Flannigan's ( love the steak dinner and the grilled salmon), The Whale's Rib ( featured on Diners, Drive Ins and Dives on FoodNetwork TV) - the Oyster's Rockefeller rock!! An added twist with grilled tomato and cheese on top. Another killer Bloody Mary garnished with a jumbo shrimp instead of the usual celery stalk.
Coal Mine Pizza has the best pizza in town in my book, and great friendly service. And not just a pizza joint - wonderful sandwiches and main courses prepared with the freshest ingredients.
Continue down the S curve and you'll find The Bru's Room sports bar and grill. After that, head to Rattlesnake Jakes for some Tex Mex food and funky atmosphere. Bikers and tattoos are welcome here.
Final stop, Bob's Pizza ( $5.50 for 2 slices and a soda) and Amantea's Restaurant for the classic Italian touch.
Shops and restaurants surround the famous S curve area of A1A that defines this local beach spot.
What are you hungry for?? Traditional raw bar seafood? Upscale dining? Burgers and beer? Sushi? Pizza? Ice cream? All of this and more within a radius of a few blocks.
Here's a sampling of what you'll find here at the S curve on Deerfield Beach:
Probably one of the favorite spots with locals and travelers alike - the Howard Johnson Patio Bar and Grill. Located just across the street from the beach, you can enjoy the view, great food and live music every day. Everyone is friendly, so expect to join in some lively conversation if you sit at the granite topped bar while enjoying your food and libations.
Right next door is Harpoon Louie's - enjoya late breakfast with a fluffy omelet made your way with a beach view and stay to enjoy the live Reggae band on Sunday afternoon.
Or try Oceans 234 - beachside with great food and killer Bloody Mary's. Choose to sit inside or out and sample the upscale menu. And did I mention the beach view??
Next is JB's on the Beach - a favorite spot for the Boca crowd and locals. Sunday afternoons are fun here - head to the granite topped tiki bar and enjoy great food and drinks while listening to live music. Hint: The fish tacos are awesome! From Harleys to Mercedes and Porsches and the occasional blue Toyota, this is the atmosphere at JB's.
If you're looking for a hot nite spot, JBs is the place to be after 6pm on Sunday evenings. Make sure to get there early to get a seat - this place gets packed fast. The place to be and be seen!
Across the street is Kahuna's - a small and happening place with a pool table and great live music. The smoked fish dip appetizer is a must. Enjoy it leaning on the surfboard table just outside the front door so you can people watch. Bring your dreadlocks :) Also great for some garage band music on the weekends.
On the other side of the S curve, you have Flannigan's ( love the steak dinner and the grilled salmon), The Whale's Rib ( featured on Diners, Drive Ins and Dives on FoodNetwork TV) - the Oyster's Rockefeller rock!! An added twist with grilled tomato and cheese on top. Another killer Bloody Mary garnished with a jumbo shrimp instead of the usual celery stalk.
Coal Mine Pizza has the best pizza in town in my book, and great friendly service. And not just a pizza joint - wonderful sandwiches and main courses prepared with the freshest ingredients.
Continue down the S curve and you'll find The Bru's Room sports bar and grill. After that, head to Rattlesnake Jakes for some Tex Mex food and funky atmosphere. Bikers and tattoos are welcome here.
Final stop, Bob's Pizza ( $5.50 for 2 slices and a soda) and Amantea's Restaurant for the classic Italian touch.
Sunday, September 20, 2009
First Time Home Buyer - Why is my Mortgage Broker Asking for so Much Information???
As a mortgage broker in Palm Beach county, I work with a lot of first time homebuyers. The loan process is sometimes scary and intimidating. It really doesn't need to be that way, however you do need to be prepared to provide certain information so the lender can determine if you can pay the loan back.
A purchase that I am working on is consuming a lot of my time and energy, so I've decided to write this "letter" to hopefully educate and inform first time buyers and anyone else who may not be familiar with the mortgage loan process.
Dear Borrower:
As a mortgage broker, I pride myself in getting loans closed as quickly as I can. I'm good at what I do, but I also rely on a team to help me. That team can include an appraiser, a Realtor, a processor, an underwriter and YOU. Everyone on the team relies on the others to do their job correctly.
That's right - you are part of the team too. And your job is to provide me with the documentation I request in a timely manner. If you do that, you loan is going to close quickly. If not, your file is not going anywhere.
You are wondering why it's been a month and your loan hasn't closed...let's see..what could be the problem? ..
The pay stubs you gave me are from 3 months ago - and we need recent paystubs. It's taken me 2 weeks to get current pay stubs from you. If I submit your loan with outdated documents, the underwriter is going to put your file at the bottom of the pile.
You told me you had a 401K, so I asked for verification. Another week goes by..OK, I think you get my drift.
You're upset that I am "asking for so much stuff" that you're going to have to take time off work.
I am asking you for the things I know the underwriter will require. The underwriter needs to justify approving your loan. If you were loaning someone a few hundred thousand dollars, wouldn't you want to be assured you would get paid back?
If you are prepared with the documentation you will need , your loan process will go very quickly and smoothly.
Here's a list of documentation you will need to provide to your mortgage professional:
1 month's worth of current pay stubs
W2's for the past 2 years
2 years tax returns - current
2 months of current bank statements..all pages and all accounts.
Current statements for any other assets such as a 401K or mutual fund.
2 years of complete employment history and a phone number for the HR department or a supervisor who can verify your employment.
Letter of explanation for any derogatory items on your credit report. Something very short and to the point, you don't have to write a novel.
For a purchase, a copy of the sales contract signed by all parties
A copy of your driver's license and social security card
It seems like a lot, but this is what your mortgage professional needs so they can submit your file to an underwriter for approval. Providing these things with the file makes the underwriter very happy and that means a faster closing for you!
------------------------------------------------------------------------------------------------------------------------------
Information provided by The South Florida Mortgage Lady, a mortgage broker in Boca Raton, Florida
A purchase that I am working on is consuming a lot of my time and energy, so I've decided to write this "letter" to hopefully educate and inform first time buyers and anyone else who may not be familiar with the mortgage loan process.
Dear Borrower:
As a mortgage broker, I pride myself in getting loans closed as quickly as I can. I'm good at what I do, but I also rely on a team to help me. That team can include an appraiser, a Realtor, a processor, an underwriter and YOU. Everyone on the team relies on the others to do their job correctly.
That's right - you are part of the team too. And your job is to provide me with the documentation I request in a timely manner. If you do that, you loan is going to close quickly. If not, your file is not going anywhere.
You are wondering why it's been a month and your loan hasn't closed...let's see..what could be the problem? ..
The pay stubs you gave me are from 3 months ago - and we need recent paystubs. It's taken me 2 weeks to get current pay stubs from you. If I submit your loan with outdated documents, the underwriter is going to put your file at the bottom of the pile.
You told me you had a 401K, so I asked for verification. Another week goes by..OK, I think you get my drift.
You're upset that I am "asking for so much stuff" that you're going to have to take time off work.
I am asking you for the things I know the underwriter will require. The underwriter needs to justify approving your loan. If you were loaning someone a few hundred thousand dollars, wouldn't you want to be assured you would get paid back?
If you are prepared with the documentation you will need , your loan process will go very quickly and smoothly.
Here's a list of documentation you will need to provide to your mortgage professional:
1 month's worth of current pay stubs
W2's for the past 2 years
2 years tax returns - current
2 months of current bank statements..all pages and all accounts.
Current statements for any other assets such as a 401K or mutual fund.
2 years of complete employment history and a phone number for the HR department or a supervisor who can verify your employment.
Letter of explanation for any derogatory items on your credit report. Something very short and to the point, you don't have to write a novel.
For a purchase, a copy of the sales contract signed by all parties
A copy of your driver's license and social security card
It seems like a lot, but this is what your mortgage professional needs so they can submit your file to an underwriter for approval. Providing these things with the file makes the underwriter very happy and that means a faster closing for you!
------------------------------------------------------------------------------------------------------------------------------
Information provided by The South Florida Mortgage Lady, a mortgage broker in Boca Raton, Florida
Friday, September 4, 2009
Question: I Want a Lower Rate - do I Have to Refinance?
No, you do not need to refinance to get a lower interest rate. You might be able to qualify for the Home Affordabe Modification program. If qualified, you lender may lower your rate by modifying your mortgage.
The first thing you should do is go to your lender's website. They should have a section regarding how to get assistance if you are having difficulty making your mortgage payments, or something similar. This is where you can find out if they participate in the Home Affordable Modification program. If so, you can find out if you qualify. If this information is not on your lender's website, you can go to the Government website http://makinghomeaffordable.gov/refinance_eligibility.html for more information.
Basically, in order to qualify, your current mortgage payment ( principal, interest, taxes, insurance and HOA fees) must be more that 31% of your gross monthly income. ( Gross income is your pay before taxes and other deductions are subtracted).For example, if you make $60,000 a year, your monthly gross income is $5000. 31% of that figure is $1550. If your current mortgage payment is more than this, then you could qualify for the program.
The income of whomever is on the note is the income that is used to qualify you. If you are married, but you are the only one on the note, you do not need to disclose your spouse's income.
There is a calculator on the government site that you can use to see if you would be qualfied for the program.
If it looks like you are qualified, contact your lender's loss mitigation department and tell them you want to apply for the program. Be prepared with some basic financial information - have paystubs handy so you can discuss your gross income, and a list of your monthly household expenses.
The first thing you should do is go to your lender's website. They should have a section regarding how to get assistance if you are having difficulty making your mortgage payments, or something similar. This is where you can find out if they participate in the Home Affordable Modification program. If so, you can find out if you qualify. If this information is not on your lender's website, you can go to the Government website http://makinghomeaffordable.gov/refinance_eligibility.html for more information.
Basically, in order to qualify, your current mortgage payment ( principal, interest, taxes, insurance and HOA fees) must be more that 31% of your gross monthly income. ( Gross income is your pay before taxes and other deductions are subtracted).For example, if you make $60,000 a year, your monthly gross income is $5000. 31% of that figure is $1550. If your current mortgage payment is more than this, then you could qualify for the program.
The income of whomever is on the note is the income that is used to qualify you. If you are married, but you are the only one on the note, you do not need to disclose your spouse's income.
There is a calculator on the government site that you can use to see if you would be qualfied for the program.
If it looks like you are qualified, contact your lender's loss mitigation department and tell them you want to apply for the program. Be prepared with some basic financial information - have paystubs handy so you can discuss your gross income, and a list of your monthly household expenses.
Wednesday, September 2, 2009
What to do if you can't pay your Mortgage - continued
In an earlier post, I discussed the Home Affordable Modification Program. In this post I will give some more details of how the program works and how to qualify.
In order to qualify, your current mortage payment ( including taxes, insurance, principal, interest and homeowner's association fees) must be more than 31% of your gross monthly income.
If you go to your lender's website, you are likely to find a section for loan modifications, and they will have a calculator so you can see if you qualify. If it appears you qualify, you want to contact them and ask to be considered for the program. Once you have provided the financial documention they request, any foreclosure proceedings will be suspended while you are being reviewed for qualification.
Before you contact your lender, have the following items ready:
In order to qualify, your current mortage payment ( including taxes, insurance, principal, interest and homeowner's association fees) must be more than 31% of your gross monthly income.
If you go to your lender's website, you are likely to find a section for loan modifications, and they will have a calculator so you can see if you qualify. If it appears you qualify, you want to contact them and ask to be considered for the program. Once you have provided the financial documention they request, any foreclosure proceedings will be suspended while you are being reviewed for qualification.
Before you contact your lender, have the following items ready:
- A current pay stub ( be sure to note if any of your income is from overtime, bonuses, or commissions, as the lender will need to know this in order to calculate your income accurately)
- A list of your monthly household expenses
- If your loan is not currently escrowed, you will need to provide you annual homeowner's insurance premium and your current tax bill.
This is a minimum - you will also need to provide W2's for the last 2 years, 2 months current bank statements and 2007 and 2008 tax returns. Some lenders will ask for this up front, others will qualify you based on minimal up front documentation, then ask you to provide the other items later. If you do not provide all of the requested documentation, your modifcation could be denied later. So it is important to be organized
If you are self employed, you will need to provide other documentation - I will discuss this in another post. Feel free to call me if you need this information before I get it posted.
If you are qualified for the program, you will be offered a "trial period" plan. You will be required to make timely payments under the new plan for 3 months. If this is accomplished, then your loan will be modified to the new terms.
Sunday, August 23, 2009
Cheryl can be Found on Facebook and Twitter!
Follow me on Twitter
Also, find me on facebook - feel free to post any questions you may have so I can share the answers with everyone...help me spread the word to others who probably have the same questions as you do:) Just click on the Facebook badge on the right.
Mortgage and Home Loan Advice
Also, find me on facebook - feel free to post any questions you may have so I can share the answers with everyone...help me spread the word to others who probably have the same questions as you do:) Just click on the Facebook badge on the right.
Mortgage and Home Loan Advice
Subscribe to:
Posts (Atom)
Me at my favorite place
