Tag: homeowner association fees

Two ratios are calculated by mortgage lenders to determine a buyer's maximum loan amount:1) the front ratio and, 2) the back ratio. Front Ratio: The total mortgage payment including principal, interest, taxes and insurance (PITI) as well as any condominium or homeowner association fees divided by your total GROSS income. Traditionally, this ratio must be below 30% Example: With a gross income of $5000 per month, a total mortgage payment (PITI) of $1350, the front ratio would be 27%. Back Ratio: The total mortgage payment PLUS any car payments, credit card and any other loan payments including student loans divided by your total GROSS income. Traditionally this must be below 40%. Example: With a gross income of $5000 per month, a total mortgage payment of $1350, a car payment of $325, 1 credit card payment of $60 and 1 student loan payment of $150 for a total of $1885 with a back ratio of 38%. For more information or to set up an appointment call Julie at (703)765-0300. If you need help calculating your ratios, please contact Julie Nesbitt at 703 765 0300.

Budget

Establishing your budget before beginning the home search in {Location_Name} is an important consideration. Some experts suggest that you can expect to pay 25% of your salary towards your mortgage. Fortunately for people living in Northern Virginia, many job centers offering high paying salaries are available. These places include the Mark Center, Inova Hospitals, USPTO, NOVA Community College, Fort Belvoir and Reston Town Center.

Size

When considering buying a home in {Location_Name}, you must answer several important questions, such as whether or not you would like roommates, or whether or not you are married or plan to start a family. The answers to these questions will help you determine whether you might prefer a 2 bedroom condo in Courthouse  or a 1,000,000 home in Mount Vernon.

Location and Atmosphere

{Location_Name}has neighborhoods to suit everyone's needs. Arlington is a bustling city with all of the big-city amenities, such as businesses and shopping, and is only a short distance from DC. If you would prefer a small-town atmosphere, Woodbridge can offer this at only a short commuter from the bigger cities. Alexandria, a nice middle ground between Arlington and Woodbridge, has plenty of nightlife, restaurants, and shopping in a variety of neighborhoods like Old Town, West End, and Fairfax County.

Type

Condo? Townhome? Single family home? Each has their own advantages and disadvantages. Condos can offer some amenities, like a pool, fitness center, or dry cleaner, all conveniently located in the condo community, but they come at the cost of  condominium fees. Single-family homes do not have these extra costs, unless they are located within a neighborhood that has a home owner's association, but they also do not have the conveniences that a condo or townhome has to offer.

 Commitment

Since a mortgage is such a long term commitment, factoring in job security when preparing to purchase a home in {Location_Name} is vital. For those who end up having to leave the area, whether it is temporary or permanent, hiring a property manager is an option so that you can rent out your home and collect rent on it while you’re gone.

 Credit Score

The first step to buying a home in {Location_Name} is to get pre approved if you want to be considered a serious buyer. This can speed up the home buying process. Some ways to improve your credit score are to always pay your bills on time or, if you do not have credit, you can build your credit by opening a credit card, use it monthly, and pay the bill on time.