“If Debt Ratios are Tight, it is a Good Idea to Check before You Look”

“If Debt Ratios are Tight, it is a Good Idea to Check before You Look”




This client made the mistake a few years ago. He didn’t check with me to make sure that the numbers worked and they didn’t. Originally we were looking at a home where the property taxes were $4200, but the offer was not accepted. The second property the price was similar, but the property taxes were $7,900.


The property he wants to look at now is a condo and the fee is $503, as a result the debt ratio doesn’t work. He is at least checking with me in advance so that he is not wasting anyone’s time.



Hi Joe, I decided not to proceed with purchase of property at 57 town beach road, because it needed a lot of work. You did send me a letter for pre qualification for property, but need a new one. I am wondering if I can afford another listing at 110 Sandy Point Road, same town. Have not looked at it yet. Asking price is at $255,000, will I still be OK at this price? Taxes are $3,250 and HOA is $503 per month .I was not looking for condo's for a little while because had family and friends visiting for their vacation. I should of told you I decided not to proceed with other property, sorry.


 Image courtesy of StuartMiles/freedigialphotos.net

Subscribe to my blog via Email:


Enter your email address:

Delivered by FeedBurner


Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



Like me on facebookfollow me on twitterConnect with me on linkedin

Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 9 commentsJoe Petrowsky • September 19 2016 08:07AM


Good morning, Joe -- your client is smart to proceed with caution and with the knowledge that he cannot only afford but qualify for his purchase.  Here's hoping he finds the right fit very soon.  

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 over 4 years ago

Hi Joe Petrowsky Explain the ratios to him and he can make that determination on each and every property he is interested in.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 4 years ago

Joe, Knowing what he qualifies for, inlcuding taxes and HOA fees should help him narrow down his search ... and only look at homes within his budget. 

How the heck are you, Joe Petrowsky?  


Posted by Kathleen Daniels, Probate & Trust Specialist, Probate Real Estate (KD Realty - 408.972.1822) over 4 years ago

Joe WOW I did not think we had condo fees that high in CT

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 4 years ago

Good morning Joe. I never understand why anyone would want to waste their time looking at homes they can't buy.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) over 4 years ago

Those fees add up and can certainly dash a buyer's hopes in a hurry.  Good thing he has you guiding him Joe Petrowsky !

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) over 4 years ago

Joe- more people should find a professional such as yourself to whom they can turn to ask questions and find out just what they will qualify for. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) over 4 years ago

Hi Joe

I think some buyers simply do not understand the issue of ratios and how it impact them, nor what should be considered in evaluating those ratios. Good thing he is checking in with you!!


Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (eXp Realty of California, Inc.) over 4 years ago

So many times people don't stop to consider HOA fees in the cost or debt ratio

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) over 4 years ago