How much home can I afford?

How much home can I afford?

It’s one of the most important questions you can ask yourself before embarking on a home buying search.  Knowing the factors that lenders take into consideration when you apply for a home loan is a smart first step in the process.  Key factors include:

Debt to income ratio:  this is your monthly total debt divided by your monthly gross income.  This measurement is used to ensure that you’ll have enough income to cover both your new mortgage payment and the monthly bills on any existing debts.

Credit Score:  your credit score is based on your payment history, overall debt level, length of credit history, types of credit and applications for new credit.

If your credit score falls within an unfavorable range, traditional lenders may be hesitant to approve you for a loan.  You still may be able to obtain a loan, but you might have to pay higher mortgage rate.

Down payment requirements: You’ll need enough cash on hand for the required down payment.  The down payment amount can affect the interest rate on your mortgage.  There are options available that may allow you to purchase a home with less cash required and a lower down payment.

How much home can I afford?

How much home can I afford?

Call me today to find out more.

How much home can you afford? Knowing the factors that lenders take into consideration when you apply for a home loan is a smart first step. With the help of myself and John Coneys of Freedom Mortgage, we’ll determine the key factors that will affect you. #RealEstate #Realtor #HomePurchase #BuyersMarket #FreedomFast #ExternalObsolescence #HowMuchHome