When you are ready to find a home, there are so many things to consider and 70% is in regards to cost in some way. The 30% is usually the style of the home and its issues if any that can be fixed or maintained. When you get an approval, you are given an idea of the amount you may shop for and remember that amount can decrease or increase after all paper work is completed. I do remember when I was shopping just last year and the huge question was “where.” Where do we look? Usually most people have a couple cities or even counties they start to look at and most start at Zillow then the realtor. We all usually end up playing with that mortgage calculator on Zillow but, did you realize that calculator does not add taxes and PMI? Not everyone has PMI on there loans but 90% do and that is quiet a bit. For example, on an average PMI here is an example. A mortgage is $1100.00 and the PMI is 500. PMI is another blog and I will explain that next time. Now, back to taxes!
One county may have a higher tax bracket for homes in certain locations and another may be quiet less in cost. The way to find out or get an idea is look at the prior owner’s taxes on property appraiser and if the house is brand new on slab you will not find that til next year so look at homes fairly new in the area. Being Homestead your taxes will always be cheaper than not being Homestead. When you determine the tax amount that meets your budget start from there and if the counties are about the same than have fun and just look and find what you wish for. Remember the taxes can increase each year and capped by 3% in most states and depends on the state and county. If your home is not Homestead most states cap off at 10%. That is so large in numbers and your mortgage will really increase. When you have one county you just love but the taxes will double your monthly payments almost please consider if you will even enjoy your home there as you could end up house poor. You ever hear that term? Basically, means you just work to pay for your home and not even going out at all or buying the food you want and that is not fun. Decide, if you can try and make new friends in the county that best fits your budget and still on occasion drive to the county you love where your friends may be at or even your job. Figure the extra cost you will pay for gas and then the final number of your monthly payment. This is feel is one of the hardest decisions when finding a home.