Save yourself a lot of worry and wheel spinning. Just take some time to figure out just how much you Can afford to spend on a home.
Here are just a few basics one can do while sitting at the kitchen table...
As a rule of thumb a lender will want to see your mortgage payment to equal no more then 29% of your u GROSS income. This this money you make before anything is deducted from the check.
Then you need to consider the currant loan interest rate.. In today market about 6 to 6-5 % is a good figure to work with.
Of course the lower the interest the more home you can afford.
OK lets say you make 60,000 gross pay a year. you take $60,000 x 29% is..174000
Now divide this by 12 months..1,450 now lets say if you add on interest 6% that comes to $ 87.00.
This means to me you should try to find a home that Will run you about 1,000 to 1,100 a month. this way your pmi..( private mortgage insurance) and your interest and taxes will all fit into the 29% of your pay.
I know this is a lot to grasp. But get out the calculator and pay around with the figures.
It pays to be smart and know the odds before taking on a mortgage.....