Home buyers are often unsure about the financial aspects of buying a home, and you
may have many questions swirling in your head. How much can I afford? Do I need
a large down payment?
Your home price range will be determined by your income, credit history, the cash
you have for a down payment and closing cost, and your debt. How much you earn compared
to how much you owe will likely determine how much the bank allows you to borrow.
The financial rule of thumb is: your total monthly debt service, which will include
your monthly mortgage, shouldn't be more than about 36 percent of your gross monthly
income. Most experts say that your monthly housing expense, including taxes and
insurance should not exceed about 28 percent of your gross monthly income.
Naturally, every situation is different, and each lender has different rules about
working with buyers. A number of choices within your control can affect your monthly
payment as well. For example, you might choose an adjustable rate loan, which has
a lower initial payment than a fixed rate program. Similarly, a larger down payment
may lower your monthly payment.
If you'd like more information about how much home you can afford, please call or email. I can help you get the mortgage information you need. Call me at 817 217-0005 or firstname.lastname@example.org