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.

Image: What Ever Home Buyer Should Know

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.

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.

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!

Contact Information

Tricia McCarroll
Real Pro Systems
1200 Executive Parkway, Suite 400
Eugene OR 97401
541-743-8507
Fax: 541-743-8535

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Disclaimer - this site is an example of our  Real Pro Gold agent website system offered by Real Pro Systems. Terri Renella does not represent buyers or sellers of real property and listings on this site are for demonstration purposes only. Your are welcome to test any idx searches and enter any forms you come across. For full IDX integration see www.rpsgolddemo.com