How Much Home Can You Afford?
Whether you are a first-time home buyer or looking to upgrade to a larger home, determining how much house you can afford is an important step in the mortgage process. Some real estate agents may even require a pre-qualification letter before showing you a home.
Numerous factors can determine what you may qualify for, however below are 4 key factors that a lender will consider when determining your mortgage qualification:
Keep in mind, it is important to understand the difference between a pre-qualification amount and the amount you end up borrowing. Becoming “house poor” can be easy. Your pre-qualification letter states the maximum loan amount you can borrow based on the information you have given, but that doesn’t mean you have to borrow the full amount. Make sure you consider additional home costs such as utilities, maintenance and insurance to determine how much you are financially comfortable buying.
Use this house affordability calculator to jump start your mortgage process.
Contact a MTC Federal Mortgage Specialist today to move forward with your pre-approval.Contact Us