b'Financing Your HomeLocal lenders offer service, optionsG iven the competitive nature of theBuying a Home first day that they are officially listed on mortgage business,banks andthe market. As a result, potential buyers other lending institutions offer aMany lenders have online worksheets toneed to make sure they have everything variety of products that have made homehelp you determine how much house youready to go when they enter the market.buying simpler. Mortgages come withcan afford. Generally speaking, house either fixed or variable interest rates.paymentsincluding insurance andOne of the best ways to prepare is to get Fixed rates are typically one or twoproperty taxesshould not exceed 28pre-qualified by a lender. The lender will percentage points higher than variablepercent of household gross monthlyreview all of your financial records and rates, but the rate remains constantincome (income before taxes). Totalcertify that it will give you up to a speci-throughout the life of the loan. They arehousehold debt (including credit cards,fied amount for a mortgage. Having that best when interest rates are stable or formortgage, auto and other loans) shouldin hand when you make your offer can not exceed 36 percent of monthlyease seller concerns over financing. homeowners who plan to live in their home for a long time. Variable- orincome. Homeowners who cant make a adjustable-rate mortgages (ARMs)down payment equal to 20 percent of the increase and decrease with the prevailingsales price will likely have to purchaseMortgagesinterest rates. Variable-rate mortgages areprivate mortgage insurance, which canMortgages are available through mort-best when interest rates are changingadd $50 to more than $200 to thegage brokers, banks, credit unions and rapidly or for homeowners who expectmonthly payment. Buyers should consultsavings banks. Whether you elect to rates to decline in the next few years,a Realtor or mortgage banker towork directly with a lender or through a plan to stay in their home for five years ordetermine what they can afford.mortgage broker, it is a good idea to get less, or are confident their income willpre-qualified. This will help you defini-increase in the years ahead. In order totively ascertain how much you can afford. protect homeowners, variable rate loansLocal Lenders It will give you a competitive advantage have caps that limit how much theMilwaukee has many local lenderswith sellers, because you can present interest rate can increase over time.who know the Milwaukee market andthem with a document demonstrating can provide valuable assistance with athat you will be able to pay the amount mortgage, including Equitable Bank,they are asking.Average 2022Summit Credit Union and WaukeshaFixed-RateState Bank.Home SalesThere are many benefits to selectingFixed-rate mortgages feature an interest Prices: local lenders. They know andrate that stays constant throughout the understand the local market and canlife of the loan, which typically range in Milwaukee County provide advice if they think a sellerslength from 10 years to 30 years.price is too high. Sellers and listing $230,000 (+7.3%) agents like working with local lendersAdjustable-Rate because they know each other. Finally, Waukesha Countyselecting a local lender is a great wayWith an adjustable-rate mortgage (ARM), $326,000 (+14.1%)to start a banking relationship forthe interest rate changes periodically. people moving to the area. They are typically characterized by the Ozaukee County amount of time that must pass before the $410,000 (+6.6%) rate can be changed (1, 3, 5, 7 or 10 Prequalificationyears, for example). Rates are generally Washington Countylower than fixed-rate mortgages, but In the past few years, the Milwaukee ARMs carry the risk that an increase in $340,000 (+9.2%) market has been very active. Affordableinterest rates will lead to higher monthly prices and increased demand for housingpayments. Racine County have significantly shortened the time $238,750 (+8.5%)homes are on the market. In fact, it is notFHA-Insured Loansunusual for homes to have two or three offersat asking price or higheron theThe Federal Housing Administration (FHA) 76 YOUR RELOCATION RESOURCE'