Author Archives: Christine Macrenaris

By: Christine Macrenaris

If you are like many first time homebuyers, you are excited and eager to purchase your first home.  Yet, your funds are somewhat limited, as you are just starting out. How do you calculate how much to spend on your first home?

One key calculation utilized by lenders is your debt-to-income ratio.  Lenders use this ratio to determine how much mortgage debt you can handle and, consequently, the maximum loan amount you will be offered.  This ratio is based on how much personal debt you carry, (including auto loans, student loans and minimum credit card payments) in relation to how much you earn, or your gross income.

To determine this ratio, you’ll need to do a little math.

1.     First, determine your monthly gross income. Remember, your gross monthly income is the before-taxes total earnings from the month, not how much money you actually take home after paying taxes, social security and other deductions.  Multiple your monthly gross income by .36, which will give you the monthly debt payment number that experts have identified.

2.     Next, add up all your family’s fixed monthly debt expenses, such as car payments, your minimum credit card payments, student loans and any other regular debt payments.

3.     Then, subtract the second number (your fixed monthly debt expenses) from the first (your debt payment number) to determine the maximum mortgage payment you can make per month. Keep in mind that this number includes private mortgage insurance, homeowner’s insurance and property taxes.

To determine the price of home you can afford based on this amount, use an online home affordability calculator.

Finally, in addition to the above calculations, sit down and go over your monthly budget and make sure you feel very comfortable with your estimated monthly mortgage payment.  If your mortgage payment needs to be lower to give you flexibility in your budget, reduce it accordingly.

By: Christine Macrenaris

When searching for a new home, finding the right house is often the buyer’s primary concern. But while locating that perfect house is certainly a key component, the neighborhood in which the house is situated is equally important.  Buyers should ask themselves the questions in this podcast before buying property in any area:

1. Have I visited this neighborhood more than once? If the answer is “no,” then you should make at least two additional visits to the neighborhood, each at different times of day.  You may find that traffic at 8:00 a.m. in that area is unbearable, or that at 9:00 p.m. on Fridays the next-door neighbor plays electric guitar with is rock band in the backyard.  Be sure to get to know the neighborhood at different times of day.
2. Have I talked with any of the other residents in the area? Again, if the answer is “no,” then be sure to chat with a prospective neighbor soon!  Talking with the locals will help you to understand their likes and their dislikes or concerns about the neighborhood.
3. Have I researched the schools, hospitals, healthcare facilities, parks and local law enforcement? As a homebuyer, you should know how the prospective school district performs, which healthcare facilities are available and where the local service providers and parks are located. If everything checks out to your satisfaction, great!  If not, you may need to assess your values and make a decision as to whether the neighborhood will meet your needs.
4. Have I reviewed the local crime statistics? When considering any neighborhood, it’s important to consider your personal safety and the safety of your family. In most cases, local crime statistics can be accessed online through the police department’s Website.  Otherwise, call the local police station and ask to view a copy of the city or town’s most recent crime report.  If you have questions about the report, talk with the local law enforcement officials and they will assist you with interpreting the report and answer any questions you may have.
5. Can I picture myself and my family living here? Does the neighborhood offer the restaurants, retailers, entertainment complexes and sports facilities that you and your family enjoys?  If not, can you live without them?  It’s critical that your future neighborhood suit your way of life, so be sure you can imagine yourself living and thriving there.

By: Christine Macrenaris

As we mentioned in a recent blog post, The Stacks at Fulton Cotton Mill worked with Savannah College of Art and Design (SCAD) to help showcase its loft product.  The contest provided an opportunity for an up-and-coming interior designer, Christy Hudson, to showcase her talents, as well as help the property show off its unique loft charm.  It was a win/win for all!

The Atlanta Business Chronicle featured Christy’s loft design in this Living in Atlanta article.