Getting Prepared

Before you step foot into the first home you look at, it’s a good idea to thoughtfully determine your wants and needs, and the difference between the two! By analyzing your needs you will be able to get a clear picture of exactly what you want your new home to look like and how it [...]

First Time Buyers

Approaching the task of buying a home can be overwhelming. It is a complex event during which there is so much to learn and to consider. How much can I afford? Where will the down payment come from? How much will I need and where can I find the best loan? How do I begin [...]

Estimate Your Buying Power

Lenders use two standard (but somewhat flexible) guidelines to determine how much of a monthly mortgage payment you can afford. The first guideline is that your household should spend no more than 28 percent of its gross monthly income (before taxes) on monthly housing expenses, including: mortgage principal and interest, hazard insurance, real estate taxes [...]

What Can I Afford?

There is a rule of thumb that says that if you have the capacity to repay the mortgage, you can afford a single-family house that costs up to two and one-half times your annual gross income. (Annual gross income is the amount you make before taxes are deducted.) Like other rules of thumb, this is [...]

Income vs. Debt Ratios

As you think about applying for a home loan, you need to consider your personal finances. How much you earn versus how much you owe will likely determine how much a lender will allow you to borrow.
First, determine your gross monthly income. This will include any regular and recurring income that you can document. It [...]

Getting Pre-Approved

Though you may be willing to spend a certain amount, the real determination of how much house you can afford is driven by how much a lender calculates you can afford. So before you begin to search for the perfect house, it is very important to begin the homebuying process by getting preapproved. Getting preapproved [...]