How Much Home Can You Afford?

So you are thinking about buying? Know how much you can afford is the first rule. To get to the numbers you will to need to gather your debt, expenses, savings and income information for your loan agent.

A review of your assets and income versus your debt and monthly expenses will provide an estimate for how much mortgage loan you can get pre-qualified for. A pre-qualification is the easiest one of two documents you can obtain to show the sellers that you are serious about your offer and financially capable. To have this document in your hands will save you a lot of time and enable you to move quickly should you find a home and wanted to make an offer. It helps you to focus on your price range and stay realistic to what you can afford.

Some sellers might require a pre-approved letter. This document is indications to weather you have the financial means to purchase his / her home. A pre-approval is a calculation done by a mortgage lender, which is the amount you will be able to finance through a loan and what your monthly payment will be.

How much home you can afford will depend your gross income, your available funds for down payment, closing costs and cash reserves required by the lender, your debt, your credit history, the type of mortgage you select, and current interest rates

Thank you for reading. I hope you find this article informative. Please feel free to contact me or comment below with any thoughts.

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