What is the availability index?
Availability Index is to measure the ratio of your income/to the price of houses that determines whether you can afford a house, what type of house you can afford and whether you are in the range of income that will make you attractive to creditors. These indices can publish cities, states, growing communities and many other sources to help you assess your potential to be the owner of the house. Some types of availability index are also considering how life in some places could reduce your costs or increase them for things like transport. If you are rated 100%, it means that the house in your price range should be able to buy on the basis of the income you earn. If you have less than 100%, most creditors consider you less than you can afford home. In general, your income should equal about a third of the total amount of the loan with the ability to pay by 5% down. It can be a gonaHor or down with an increase or decrease in interest rates and houses you can afford can change with housing prices.
Another type of availability index focuses on the number of people who can afford to buy a house in a particular community. This is also evaluated in percent and is based on medium or average community intake. In some communities, the availability index may show that too few people can buy a house based on the income they earn. This can help local employers know what type of salaries they might need to offer to workers to attract them to their business or keep them in this area, and it can also allow people to sell homes to know how their home prices. The lower the percentage of the availability index for the whole community, the less people will be able to afford to buy even the most basic houses. If the availability index of this type shows that only 25% of people in the community can afford a house, then there may be significant problems with the sale of houses.
Most availability indexes do not take into account the purposeAST, which is an important perspective for creditors. A bad credit can on an individual basis for a relatively unnecessary availability index, unless the loan you take is very small. If your credit is quite healthy, these indices can help you decide when and where you could buy your first home and whether the bank considers you as a qualification to get a loan of a certain size. If your dream of ownership of the house is not the one that can occur in the community you live in, you can find somewhere else where you can afford a house, even if it must be, your salary must be straight or larger than the amount on the index.