How Much House Can You Afford?

How Much House Can You Afford?

Determining how much home you can afford, or what payment you feel comfortable with, can be a trying process. Calling lenders, looking at mortgage loan programs and interest rates can be confusing, to say the least. There is an easy way to get started, and give yourself an idea of where you stand.

To obtain a very clear picture of how much home you can actually qualify for, the best idea is to contact a reputable local lender and let them analyze your entire situation. The lender can calculate your income-to-debt ratio, do a quick credit score and give you the information you need. Typically, lenders like to see a ratio not exceeding about 28%. This does not take into consideration long term monthly debt. As an example, to qualify for a loan, lenders may require ratios of 28% or 36%. This means you can spend up to 28% of your gross monthly income on a motgage payment, and no more than 36% of your gross monthly income on all forms of debt, mortgage included.The first step is to find out what mortgage interest rates are at the current time. You can typically do this with a couple of phone calls to lenders or some quick searching on the internet. Get your rates on conventional fixed rate loans.

We work with a number of loan officers and would be happy to recommend one right for you. Click here to contact us today. We are happy to help!

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Mary Ann Sawyers
Coldwell Banker The Ron Brown Co.
2505 N Navarro
Victoria TX 77901
361-550-4304

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My office is located at:
2505 N Navarro
Victoria, TX 77901

361-550-4304
866-295-0566
MaryAnn@MaryAnnSawyers.com

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