A Kentucky Mortgage Loan Officer specializing in FHA, VA, USDA, First Time Buyers and KHC. This website is not an government agency, and does not officially represent the HUD, VA, USDA. FHA, Fannie Mae or any other government agency. NMLS# 57916 Equal Housing Lender
1. This will give you the application for beginning the HUD process, as well as a list of approved lenders that work with HUD homebuyers. The list of lenders should be contacted by phone, and ask them to send you paperwork to begin the process of being pre-approved for a mortgage. This tells you how much money you are approved for purchasing the home. In most all states, you can be approved for up to 97 percent of the total purchase cost.
Sit down with your budget and figure your annual income after taxes. Do this by adding together your weekly income along with any income that a spouse or anyone who will be included in purchasing the home brings in. This total is your annual income. Multiply your average gas and electric bill by 12, and also multiply your monthly grocery, gas, water, insurance and any other bills you incur on a monthly basis by 12 not counting rent. These should each be listed separately and then added together for a grand total of bills.
Subtract your total yearly bills from your annual income, and this is the amount of disposable income you have on hand every year. This is also the amount of money you have available for rent or a mortgage on a home. This figure will go into finding a home you wish to buy.
Divide the disposable income by 12. This is the amount you have available on a monthly basis for a mortgage payment. This monthly figure will tell you how much you can afford to pay for rent or a mortgage, and in turn will help you decide on a home you wish to buy based on price alone.
Look for a home to purchase. Your requirements will be different based on family size, area of town and the state you live in. Choose wisely, as it can take up to 30 years to pay off a home loan.