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What is a Contingency?

  In my last blog I discussed what Pending means in Real Estate and I stated:   Anytime I say Pending, it means the house is under contract. Either with a contingency or not, the house is more than likely going to another buyer. It's just a matter of time until it closes and the new homeowner will be moving in. So what is a contingency?  Well a contingency in a contract is anything that must be first met to allow the sale to continue in the manner in which the contract was written. Most contracts have standard contingencies to include a home inspection, a financial contingency and an appraisal contingency. Other contingencies could include a home sale.  Home Inspection Contingency: This contingency allows the buyer to preform a home inspection (all home inspectors in the state of Virginia must have a license) and the buyer has the opportunity to ask for repairs in order for the contract to move forward. Sellers at this time can a couple of things. Repair all items Repair some it

How Much Home Can I Afford?



How Much Home Can I Afford?

Figuring out how much you can afford or what your payment will be each month is one of the most asked questions I face as a Real Estate Agent. Picking up the phone and calling a lender you don't know can be scary. Looking at mortgage loan programs available can be confusing and understanding interest rates can be trying. 

There is an easy way to get started. 

Step One: Find out what the interest rates are at the current time. You can typically do this by searching on the internet or a quick call to a local lender. Get your rates on conventional fixed rate loans.

Step Two: To obtain the clearest picture of how much home you can actually qualify for, the best idea is to contact a reputable local lender and let them analyze your entire situation. 

This lender can calculate your income-to-debt ratio, do a quick credit score and give you the information you need. Typically, lenders like to see a ratio not exceeding about 28%. 

This does not take into consideration long term monthly debt. As an example, to qualify for a loan, lenders may require ratios of 28% or 36%. This means you can spend up to 28% of your gross monthly income on a mortgage payment, and no more than 36% of your gross monthly income on all forms of debt, mortgage included.

I work with a number of loan officers and can recommend one for you. Contact me from the sidebar! 

Thanks!

Leigh Ann 

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