How Much Home Can You Afford? презентация

consider how much home can you afford.

These include:

How Do Lenders Determine How Much You Can Borrow?

Front-End Ratio

Back-End Ratio

Down Payment Percentage

gross income and the anticipated monthly payment associated with your loan.

Front-End Ratio

Most lenders do not want this amount to be more than 28 percent of your gross income

Some lenders will still approve a loan where this figure is as high as 40 percent

is needed to cover all of your debts.

Back-End Ratio

Including the anticipated mortgage loan debt as well as car loans, credit card payments, other loans, etc.

Some lenders will go as high as 45 percent

Most lenders do not want this figure to be more than 36 percent

cost of the home that you are able to make as a down payment.

Down Payment Percentage

Many lenders will allow you to make a purchase with a significantly lower down payment

A down payment of at least 20 percent is preferred

Many lenders will allow you to make a purchase with a significantly lower down payment

mean that you should get one.

Looking at Your
Personal Situation

You need to consider your personal situation when deciding how much home can you afford and whether now is the right time for you to buy

Qualifying for a loan does not mean you are truly prepared for the financial responsibility
of owning a home

local market stats? If you have a steady job, do not anticipate moving away in the next five years, do not have any anticipated major expenses in the near future and if your front-end and back-end ratios are below the top limit, you are probably in a great position to make a home purchase.

Source: http://sellingwarnerrobins.com/2014/02/how-much-home-can-you-afford/

www.sellingwarnerrobins.com

Anita Clark

©