How Much Home Can you Afford?

Once you have decided that you would like to purchase a home, you will need to decide how much you can afford to spend.

Lenders consider a number of things when deciding how much you can reasonably afford. Some of the more important things they consider are down payment, income, assets, employment history and credit history. Since there are so many different factors that go into pre-qualifying you for a loan it is important that you give your mortgage consultant accurate information about your financial situation upfront so that he or she can determine a realistic amount for you. You can also use our Mortgage Qualifier Calculator to get a rough estimate of the amount you may be able to qualify for.

How Large of a Down Payment Can I Make?

Many buyers look at their cash on hand as their only source for their down payment. This simply is not the case. One way to fund or partially fund a down payment is by using a gift. Parents, grandparents and other family members are often eager to help by making a cash gift toward the purchase of your home. There are also down payment assistance charities that can help you. And, of course, if you are selling a home, the equity you�ve built up can be applied to your down payment. But these are not your only options. We can help you explore all your down payment options, including low down payment and 100% mortgage financing options that might be right for you.

What Size Monthly Payment Can I Afford?

When determining what size monthly payment you can afford, you�ll want to consider what other monthly expenses you have. Tangible expenses such as car payments, day care and utility bills, all play a role in how large a monthly payment you can afford. There are also the intangible expenses or lifestyle expenses that you�ll want to consider. Things such as dining out, travel and when you buy your next car can effect how much you can afford. Are you willing to curtail or delay some of these expenses in order to afford a larger monthly payment?