How much can I afford?

One of the most frequently asked questions I get when buyers come to see me is how much can I afford?

One of the best things you can do is get a great lender at the very beginning of the process to answer that question. It’s going to depend on how much monthly payment you want to have and then they will look at your income and your assets and if you are in a job that is progressing in your salary or if you’re in a job that maybe is not progressing they’re going to give you some advice on how much you can afford based on that not but ultimately you’re going to tell the mortgage broker what you can afford in your budget. You will decide on what you feel is comfortable and then she will look at your goals. If you are buying a house that you want to be in for a long time then she’s going to probably stretch you to a point where you are in an income that’s going up and your payment can match it.

If you for instance are relocating to the area and you know you’re only going to be in this area two to three years it may not make sense for you to get a 30-year fixed-rate mortgage. If this is going to be your forever house you might want the 30-year fixed-rate and get the best terms you can get because you know this is going to be house will be in for a while. If you’re a two-income family and you know that soon it’s going to be a one-income family because one of these going to stay home, then I’ll take that into consideration. A really easy way to do it is like 33% of your income is what we use for the payment and 38% of your total debt based on your gross monthly income but I would highly advise you talking to a mortgage broker because there’s so much more that goes into it besides just those simple fraction. your realtor can give you some good options for people they know the work in the area that are familiar with this location, and you’ll pick a product for your interest rate based on what your needs are.

Contact Mary Byrnes