Greg Ricks NMLS #2075538

Did FHA change their guidelines this week?

Yes. The way they look at student loans was the biggest change. Before you had to calculate monthly payment as 1% of the balance. Now, we can use documented payments if they’re above $0. IBR is allowed. If it is a $0/mo payment, we calculate at .5% just like Freddie Mac.... If you have a pre-approval using a FHA loan, have your lender rerun you through the automated underwriting system just to make sure you still good to go.

Where can I find the best mortgage lender? What’s the home buying process?

You can find the best lender in my inbox 😂...... You will fill out an application with me. I’ll get you preapproved which is basically you getting approved as a borrower. This will tell you how much you can borrow and how much the home can be. You’ll take that to a realtor, I know ones that can help. The realtor will help you find a home and put in an offer. Once you have your offer accepted you will have a sales contract. You’ll bring that back to me and I’ll get the home approved. Once that’s done, you’ll be clear to close. You’ll have a closing day, sign the papers, and the house will be yours 🎊🎁🎈.

What’s my price range when thinking about buying a house?

Take your yearly gross income and multiply it by 3.7 and then 4.5. This will give you an idea of the price range you might get approved for. Monthly payments shouldn’t be more than a third of monthly gross income. Most people in Texas get discouraged when looking at homes that are less than $200k to be honest. Just remember, your first home doesn’t have to be your forever home. Live there for 3-7 years and build equity then sell to buy another home using the equity. With home values going up, you can buy a $200k home and it might be worth $250k in a few years. You get to pocket the $50k when you decide to sell it. Rent for 3 years, I can guarantee you, your landlord won’t give you $50k when you move out.

Example 3.7x50,000 then 4.5x50,000 would give you a price range of 185-225k.