Understanding Your Debt To Income Ratio In Ogden

It’s a terrific time to buy Provo residential, commercial, and land! Interest rates are nice and low and real estate prices favor Provo and Ogden buyers.

Before you drive through your most coveted Salt Lake City neighborhoods looking for ‘For Sale’ signs, you’ll need to figure out how much house you can afford and get pre-approved for a home mortgage.

I am Chris Johnson a professional real estate agent who has experience working with people with various needs, circumstances, and budgets. To make the process run smoothly, it is important that Utah property buyers (especially first-timers) understand their debt to income ratio.

A good rule to follow is the 30 percent rule: your house payment should not exceed 30 percent of your monthly take home income, including interest, taxes, and insurance. Extra-careful Ogden budgeters plan for a payment less than 30 percent.

Try to get your debt to under 20 percent of your monthly income. You will be doing yourself a huge favor when it comes time to get pre-approved for your Utah home loan. Then decide how much of your savings you can afford to spend on a down payment. With this information, I can find a mortgage professional who will work to qualify you for an amount you are comfortable with.

If you aren’t going to apply for a mortgage for several months, you can ‘practice’ making your future house payment. Take the difference between your current Ogden house payment or rent and the higher estimated monthly payment and put it in a separate account. When it comes time obtain your financing, you can apply the money saved to your down payment.

I want to find you a fantastic deal on a desirable Ogden property and make the process as easy and enjoyable as possible.

For other tips and help with all of your Ogden real estate needs, contact me today at 801.938.3466!

real estate agent Chris Johnson
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