How much home can I afford?
While a new home is probably the most expensive purchase you'll ever make, most families realize that when they take the time to break down the numbers, that not only can they afford to buy a new home, but that they can do it within their current family budget.
A good rule of thumb is that you can often afford about 3.5 times your gross annual income, as long as your current monthly expenses are average. A simple visit to our "affordability calculator" will let you how much home you might qualify for. All you need to know is your monthly income, expenses and available down payment.
Of course, mortgage qualification depends on a number of individual factors, from local property tax rates to credit scores. To get a more detailed, accurate prequalification, please fill out our "prequalification form" or just give us a call, and any of our agents will prequalify you by phone.
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How do I prequalify?
Walker Homes can make the prequalification process easy for you. Just complete the prequalification form online, or by calling us at (941) 625-4513.
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How much do I need to save before I can qualify to buy a new house?
With the financing programs of today you don't need a lot of money saved before you can buy a home. Initial cash needed to get into your home is divided into two areas: deposit and down payment
All that's required at the time of signing the contract for your new Walker Home is a completed mortgage application and a small good-faith deposit. Then we begin building your new home from the ground up. The deposit amount varies according to the price of the home. Your final down payment and closing costs aren't due until the time of closing, when you're ready to move into your new home.
Down payment costs vary depending on which type of loan you use. For VHA loans, the down payment is 0%. For FHA loans it is about 3%. For conventional loans it is typically 5% or more, although there are some 103% conventional loans that offer you the opportunity to finance your down payment as well. In addition, there are down-payment assistance programs that can help buyers get into the home of their dreams for zero down.
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Are there tax advantages to owning a home?
There are many tax advantages to owning a new home.
Mortgage interest
The interest you pay each year on your mortgage loan is fully deductible from your income. The limitations are only that the mortgage must be for a first or second home, and the mortgage amount must meet established guidelines.
Points or origination fees
Points are charged by the lender in connection with your home loan, and are fully deductible in the year you pay them. If you obtain a home equity loan in future years in order to make additions to your home, those charges are again deductible, subject to some limitations, also reducing your tax liability.
Property taxes
The property taxes you pay on your home are also deductible from your income at tax time. Check your year-end mortgage statement to discover how much property tax you paid. If you pay the tax separately from your mortgage, keep track of those records.
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If my credit is less than perfect will I still be able to qualify?
Many of our first-time homebuyers are pleasantly surprised at how easy it can be to qualify for a mortgage.
Walker Homes offers several financing programs designed for a variety of situations, from homebuyers with less-than-perfect credit to low down payment programs that make it easier for you to get into the home of your dreams, as well as our Zero Down Program.
When you visit our model sales center, one of our sales representatives will discuss your individual circumstances, pull your free credit report, and provide you with a better idea of how much home you might be able to afford. Then, after completing your loan application, a Walker Homes representative will analyze your qualifications, including credit history, to find the best financing program for your circumstances and attempt to qualify you for it.
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If I have had a bankruptcy will I still be able to buy a home?
In general, for a Chapter 7 bankruptcy, you can close on a new home two years from the date of discharge to the date of closing using an FHA or VA loan. For a conventional loan, you need four years from the date of discharge to the date of closing. You need to have re-established your credit and have made all of your payments on time. You can use your last four to six months of "wait time" while we are building your new home, which means you can actually apply for the loan as soon as 18 months after the bankruptcy discharge.
For a Chapter 13 loan, you need to have 12 months paid into the bankruptcy trustee on time, and you will need a letter from the trustee saying that you can incur new debt.
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What documents are required for my loan application?
When preparing your loan, your Walker Home Mortgage loan counselor will ask you for documentation pertaining to your income (e.g., W-2s, pay stubs), your assets (e.g., bank account statements) and any debt or liabilities (e.g., divorce decree) you may have. Since every situation is different, the documentation you need depends on the loan program you select and your financial situation. Your loan counselor will tell you the specific documentation you will need. The following are standard requirement items.
Personal information
- address and telephone numbers of each borrower
- previous address(es) over the last seven years
- Social Security number(s) of all applicants
- age of applicant(s) and dependent(s)
- name and address of landlord(s) or lender(s) for the past two years and proof of payment
- current housing-expense details (rent, mortgage payments, taxes, insurance)
- pay stubs for the past 30 days
- W-2 forms for the past two years
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What questions should I ask of my lender?
Start with, "What type of loan is best for me?" If you've done some groundwork, you should have a pretty good idea of the type of loan you need. Walker Homes may still know of options you haven't considered, or even something you haven't yet heard about.
Follow up with these important questions.
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What will my closing costs be?
At closing, you'll be required to pay a number of fees such as transfer of title, origination and appraisal, attorney services, credit report, title insurance and inspections. Lenders are required to provide an estimate of these costs to you within three days after they receive your application, but you can always ask for an estimate sooner.
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Will I be charged points?
Sometimes you'll have to pay points (one point = 1% of the loan amount) in order to "buy down" your interest rate. Before proceeding with your loan application, find out if there are any points attached to your loan.
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What items must be prepaid?
Some expenses, such as the first year's property taxes and insurance, must be paid at closing.
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How long will I be guaranteed the quoted interest rate?
This is called "locking in" a rate. When you apply for your loan, your lender will lock in the agreed-upon interest rate for an agreed-upon period of time (generally 30 to 60 days prior to your home being completed and your loan closing). Some lenders charge a fee for this service.
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How long will it take to get approval?
It varies, so make sure you get an estimate of how long approval will take, especially if you have a deadline for closing on a new home.
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Does the loan have a prepayment penalty?
If you even think there's a possibility you may pay off your loan early (this includes refinancing) find out if there's a penalty for doing so.
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