The Rocket City Real Estate Source

Market Conditions, Current Issues, and Exciting Events in Real Estate for Huntsville Alabama and Surrounding Areas

Archive for the ‘Real Estate Blog’ Category

Huntsville Home Buyer Questions: Consumer Real Estate Tips!!

Posted by huntsvillerealestateinfo on April 29, 2008

Huntsville Home Buyer Questions:  Consumer Real Estate Tips!!

Huntsville Real Estate Blog

Whenever I get questions from consumers I always come back and try to share with others.  I had a situation with a potential buyer and a mortgage officer that I wanted to share with you all.  I decided this would be good to share for those interested in buying a home, not only in Huntsville, but any where.  This post will address the subject of debt-to-income ratios.  A common term that many may not be completely familiar with the definition and significance in the home buying process.

Debt-to-Income Ratio

Do you understand the term “debt-to-income ratio”?  Hopefully this will shed more light on this term:

Well, this is a comparison of your gross monthly income (before tax income) with the amount of your monthly debt.  Your monthly costs can include things like your housing, car payments, credit cards, student loans, installment debt, etc.  This total is weighed in ratio with the amount of gross income you receive monthly.  This is a very important aspect of your approval to purchase a new home.  So just in case you’re wondering what’s the big deal?… here is a real life application!

The problem we ran into on a recent transaction was the buyer went to a mortgage professional and got pre-approved for a mortgage for a certain amount.  We look for months for “the perfect house” and we finally find one that seem to fit the bill.  So we go back to the mortgage professional and let them know that we are ready to move forward and make an offer.   To make a long story short, this buyer “forgot” to tell me and the mortgage professional that they went out and got a new car.  However, this showed up on a subsequent credit report that the mortgage professional pulled for the buyers.

Normally I would be really happy for someone to get a new car that they had been wanting… this time the problem is that this new car payment just increased their debt-to-income ratio.  Now they are no longer qualified for this new house that they now love because the car payment raised the debt-to-income ratio to a point that it lowered the amount for which they qualify for the new home. 

The jury is still out on how this situation will end but I think its important to consider the big picture.    The problem is that mortgage guidelines have strict rules that could affect your approval even if you think you are able to afford the car payment and the new house payment.  A home purchase is probably one of the most important decisions that you could make.  It is an asset that could really make a difference in your financial future.  Each situation is different and there is not always an easy answer to this dilemna but I normally advise getting the home purchase out of the way and then make any other purchases as you can afford.  I hope this was helpful. 

If you are considering making some new purchases including a new house, give our team a call and let us help you develop a plan to accomplish your goals.

 

Kimberly Grant
Realtor, Exit Leon Crawford Realty
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Posted in Real Estate Blog | Leave a Comment »

Let Me Introduce Rocket City Real Estate Source

Posted by huntsvillerealestateinfo on May 19, 2007

I love to go out about town and meet people. The real estate profession really provides a level of freedom that allows me to really get out and do many different things. While I am out and about in Huntsville, Madison, Decatur, and the surrounding areas, when I run into different people throughout the course of conversation there is one question that ALWAYS arises:

HOW IS THE REAL ESTATE MARKET IN OUR AREA?

No matter how the conversation starts, usually by the time it ends we touch on real estate in some way or another. With so much information about the real estate market in the news lately there were many people who were concerned about which way the real estate market in Huntsville was heading.

So I started sending out emails and different information to my clients letting them know about market conditions here in North Alabama. Some wanted to buy real estate, some wanted to sell real estate, and some just wanted to stay current on real estate market conditions just in case they wanted to buy or sale in the future. But I had an idea, if I could get one place on line where I could place real estate information about Huntsville and Madison, more people could see it and benefit from it. I did some research on forum and message boards, and I found that the best platform for getting out information was to start a blog.

I am so excited about Rocket City Real Estate Source. I have so many ideas that I barely know where to begin. I can inform people about the current mortgage rates, average days on the market, average selling price, and issues in real estate. This will give me another way in which to help my clients and the public at large. I am always open to suggestions for improvement and things of interest for Rocket City Real Estate Source. My wish is that it is useful, informative, timely, and above all helpful to those that want to stay up to date regarding information about buying or selling real estate in Huntsville and the surrounding areas.

Posted in About Rocket City Real Estate Source, Real Estate Blog | Leave a Comment »

FEATURED MADISON HOME FOR SALE

Posted by huntsvillerealestateinfo on May 19, 2007

For more information on this home or any other homes for sale in Huntsville or Madison, email us at info@HuntsvilleRealEstateInfo.com

Posted in Featured Madison Home For Sale, Madison County Real Estate News, Real Estate Blog | Leave a Comment »

FEATURED HUNTSVILLE HOME FOR SALE

Posted by huntsvillerealestateinfo on May 18, 2007

For more information on this home or any other homes for sale in Huntsville or Madison, email us at info@HuntsvilleRealEstateInfo.com

Posted in Featured Huntsville Home For Sale, Huntsville AL Homes for Sale, Huntsville Real Estate News, Real Estate Blog | Leave a Comment »