If you are eyeing that suburban home in Nassau County, then you need to be financially viable as a borrower. Below are a few tips on how to afford homes for sale in Nassau County, Long Island. Remember, there are only around 5,000 homes of all types available for sale in Nassau County. This is not very much as the population density is around 4,655 per square mile.
Most homes for sale in Nassau County, Long Island require you to put up a down payment. The lowest it can go is around 3% of the purchase price, but on average, it is safe to assume that most banks prefer a 10% to 15% down payment.
Tip: If you have low credit scores or your income will not allow you to qualify for a specific down payment amount, then you need to increase the down payment. This way the remaining balance goes down, thus resulting in lower installment amounts.
As a general rule, the maximum installment payment you can qualify for is around 30% of your net income. This is assuming there is 30% that is left after your monthly expenses. Because of the housing meltdown that occurred last 2008, some experts believe that 20% to 25% is a more comfortable number. The difference is placed in a savings account to be used for emergencies.
Tip: Be as accurate as possible when computing your income and expenses. If you are unsure of the monthly net income (e.g. due to regular overtime), then err in favor of the lower amount. If you are unsure of your monthly expenses (e.g. due to miscellaneous expenses), err in favor of a higher amount.
Your goal is to pay the lowest interest. Bear in mind that the percentages may be misleading. Subtract the total principal payments from the total purchase price. The result will be your total installment payments. This should paint a more accurate picture of how much money you are losing.
Credit Reports and Scores
Credit scores are important because they determine your interest payments to some degree. Your goal is to have an excellent credit score with no red flags on your account (e.g. previous bankruptcy, wage garnishment). Remember, each state has a median credit score, but that should not be your goal. Your goal is at least 750 FICO. This way you have a bigger chance to qualify for home loans with the lowest interest payments.
Some lenders tend to add a few thousand dollars via closing costs. In order to prevent this, you should be wary of the costs associated with your loan. Look at the breakdown of costs via your loan documents. Make sure you are viewing the final loan documents, not the initial offer. Ask your lender to explain each cost. Cross-reference the same with the information you find online.
Before looking into homes for sale In Nassau County, Long Island, you might want to get some financial education. Some prefer to rely on eBooks though it is much more advisable to call a credit counselor. These individuals are licensed and regulated by the state. Some are non-profit and some even provide counseling for free. If you must pay for a counseling session, the fee is minimal anyway. Just make sure that you are talking to a licensed counselor. You can verify the list online!
We are one stop shop for long island homes for sale. We offord homes for sale in Nassau County, Long Island whether its residential or commercial property.