The purchase and ownership of a home is likely the largest investment you will make in your lifetime, and naturally involves a lot of financial questions.
The first step in looking to purchase a home is discovering what you can afford. Your credit history and the amount of your income, debts, and your down payment determine the amount of a loan for which you can be approved.
How Much Can I Borrow?
Most Lenders use debt-to-income ratios to calculate the qualifying amount.
For example, a lender may tell you that your mortgage payment cannot be more than 28 percent of your monthly income, and that your total monthly debt payment (including the new mortgage payments) cannot exceed 36 percent of your monthly income.
Different rules apply to various situations respectively and the deciding factor always remains the same; financing.
In our ‘bookmarks’ section we have provided a section listing financial institutions you may like to consider contacting in order to determine who can deliver the most for your life long investment; your home.
Should you have any questions before contacting any of the institutions listed in our ‘bookmarks’ section, please feel free to contact us by clicking here.