In today’s edition of Living Akamai, Kay Mukaigawa of Engel & Volkers invites another special guest on the show.  Pacifico Dumbrique provides the education & the ability to run numbers in order to compliment the real estate agent, mortgage lender & escrow team.   The company coaches clients on 3 major factors: Affordability, debt to income ratio & credit.  Now the first two – affordability and debt to income ratio go hand in hand. When you first get a pre-qualification with a mortgage lender, the general rule is the lender can only offer you a loan where every debt payment fits into a 45% debt to income ratio otherwise known as DTI.  The remaining 55% of your income would have to cover your living expenses and this is where affordability comes into play because everyone has a different lifestyle, family situation, tuition expenses, etc.  They believe it’s extremely important to have a balance sheet of your finances where you take an inventory of your income, assets and liabilities to see what you can truly afford when purchasing a property to make sure that after all expenses are paid you do have cash flow and not run negative. 

If you have any questions or would like to attend an upcoming seminar, give Engel & Volkers a call at 808-725-2000 and let Engel & Volkers Honolulu simplify your life.