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Would they give you a mortgage if your family income isnt extremly high..but all the credit history in the family is very good.

And I want to buy a house in Brooklyn NY .. what would be the average amount for a 3 bedroom house in a average-good neighborhood ? Please help!

4 Thoughts on Please explain to me how mortgages work.. well i know how they work but i have some questions.?
  1. Reply
    February 27, 2013 at 11:33 pm

    It sounds like you need very specific answers to your questions. There is a great book available that may be helpful to you to point you in the right direction: 100 Questions Every First Time Homebuyer Should Ask. It is a very easy read and in plain English. It sure does explain a lot!

  2. Reply
    February 27, 2013 at 11:55 pm

    You should seek a local realtor in Brooklyn. Find someone that has a local office in which you can walk in and speak with them face to face. This should help you thoroughly understand the entire process of obtaining a loan and purchasing a home. Hope I heled

  3. Reply
    Jeromy W
    February 28, 2013 at 12:54 am

    this is a very broad question but I’ll try to help. I’m from NY and I would investigage the web for any first time (I’m assuming you are) home buyers programs. I believe you should run across a program called Sonyma, they help first time home owners. Next I would ask family, friends, associates if they know any respecible realtors in the area that can help you in the search for a home. As far as the mortgage goes, I know a broker in brooklyn, he’s very respecible, honest and ethical, he should be able to help you get a mortgage, let me know and I can email you his contact information

  4. Reply
    Rush is a band
    February 28, 2013 at 1:11 am

    A mortgage amount that a bank or other financial institution will lend to you depends upon your INCOME and your credit.

    The rule of thumb is to have a mortgage maximum of 2x to 3x your annual salary.

    The next level of sophistication is the 28/36 rule. That means that no more than 28% of your gross income can go towards your mortgage payment. That mortgage payment has to include principal, interest, TAXES and insurance (and PMI – private mortgage insurance if you don’t put down 20%). I put taxes in capital letters because they are variable and highly depend on where you are gonig to live. They can be as low as 0.5% of the value of the home per year up to 4% of the value of the home per year. Homeowner’s insurance is pretty reasonable and PMI can be high or low.

    The 36% rule is that all of your debt payments have to fit under 36% of your gross income. That’s everything, mortgage, car payment(s), student loans, credit card minimums, EVERYTHING. One of these two ratios will limit how much you can borrow.

    The big factors in your mortgage payment are the amount you borrow and the interest rate. The interest rate is primarily determined by how good (or bad) of a risk you are. You say you have very good credit which means you are a very good risk and you will pay less for a loan.

    One note here. My ratios are sane. Some lenders use higher percentages (some used to use really high percentages, but that is part of what caused the housing mess a lot of the country is in). Use conservative ones. I know it means that you can’t afford as much house, but you will be happy later.

    After you’ve determined what your mortgage payment could be, pretend that you already have it and save the difference between your rent and your mortgage payment and see if it is affordable for you.

    Once you have the mortgage payment and have used a mortgage calculator and figured out how much home (price) this translates into, you can look around. See if those houses are what you thought you’d be getting for your money…

    It’s a scary, but exciting process!

    good luck!

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