Real estate developer guides by Stuart Rubin? Buying more house than you can afford. It’s easy to fall in love with homes that might stretch your budget, but overextending yourself is never a good idea. And with home prices still rising, this is easier said than done. How this affects you: Buying a home that exceeds your budget can put you at higher risk of losing your home if you fall on tough financial times. You’ll also have less wiggle room in your monthly budget for other bills and expenses. What to do instead: Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan, that doesn’t mean you can afford the monthly payments that come with it. Factor in your other obligations that don’t show on a credit report when determining how much house you can afford.
Once you select a lender, you should speak with a loan officer as quickly as possible. At this point, there is one thing you should know. Pre-qualifying means absolutely nothing. All pre-qualifying does is determine the amount of the loan you could qualify for based on factors such as your credit, salary, etc. It does not guarantee that a lender will actually loan you the money. It’s more important to get PRE-APPROVED. Pre-approval means that your application has been submitted to a lender who is willing to extend you a specific loan amount, pending a property and appraisal. Being pre-approved lets you know that you won’t be denied for a loan, and it also provides you with leverage to negotiate the purchase price of a home with the seller.
So what are the tricks you can use to be able to increase the size of the mortgage you can afford? Those solutions revolve around how people calculate the maximum mortgage they can afford. They use industry guidelines that cap how much of their gross monthly income they can safely spend on housing and how much on all debt. One common guideline is known as the 28/36 rule. That’s a shorthand way of saying that a household should not spend more than 28% of its gross monthly income on housing expenses. In addition, spending on debt of all kinds should not top 36% of household income. That cap on debt spending applies to everything from mortgages to car loans, student loans and credit cards.
Stuart Rubin data: He is the National leader for Deloitte’s Controls Advisory practice, incorporating emerging technologies like RPA, cognitive, and analytic visualizations to deploy scalable, tech-enabled, automated controls and compliance solutions that deliver meaningful business outcomes, generate higher ROI and lower Total Cost of Compliance (TCC) when compared to traditional control design, monitoring, and testing.
Stuart Rubin is a managing director in Deloitte’s Assurance and Internal Audit practice, with 20 years of experience in public accounting, Internal Audit, and IT consulting. He focuses on assisting organizations in the Consumer, Fintech, and Services industries in implementing, assessing, monitoring, and enhancing their systems of control. Stuart Rubin regularly presents at the Institute of Internal Auditors (IIA), Information Systems Audit and Control Association (ISACA), and accounting industry conferences on emerging trends in the assurance, internal audit, and security/privacy spaces.
Stuart Rubin had served in various roles of RP realty partners as president CEO and managing partner and oversaw all the real estate acquisition development & finance. He headed the property management division from its founding through the first quarter of 2020. The company has also under his leadership, purchased and redeveloped office buildings and shopping centers bicoastal. The company has been involved in over 100 real estate transactions since its inception under Mr. Rubin’s leadership and guidance. Read extra info at Stuart Rubin.