How Much Home Can You Afford?
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How Much Home Can You Afford?

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Before you take the plunge into homeownership, it is important to consider how much home can you afford. When making this decision, it is a good idea to consider the factors that are used by mortgage ...

Before you take the plunge into homeownership, it is important to consider how much home can you afford. When making this decision, it is a good idea to consider the factors that are used by mortgage lenders when determining how much of a loan you can receive.

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How Much Home Can You Afford? How Much Home Can You Afford? Document Transcript

  • How Muc HOME CAN YOU AFFORD? fron -en rati bac -en rati dow paymen percentag monthly percentage based on your yearly gross income and anticipated monthly payment associated with your loan How do lenders determine how much you can borrow? LENDERS CONSIDER THREE PRIMARY FACTORS WHEN DECIDING HOW MUCH TO LEND YOU. percentage of your gross income that is needed to cover all of your debts percentage of the total cost of the home that you are able to make as a down payment most lenders do not want your monthly payment to be more than 28% of your gross income 28% 40% most lenders do not want your amount of debt to be more than 36% of your gross income 36% 45% most lenders prefer a 20% down payment, but some will allow significantly lower amounts 20%
  • some lenders will still approve a loan with a monthly payment as much as 40% of your gross income some lenders will allow your amount of debt to be as high as 45% of your gross income Looking at your personal situation YOU NEED TO CONSIDER YOUR PERSONAL SITUATION BEFORE DECIDING HOW MUCH YOU CAN AFFORD AND WHEN IS THE RIGHT TIME TO BUY. Is it an ideal time to buy? Have you researched the local market stats? Do you have a steady job? Do you have any anticipated major expenses? What are your front-end and back-end ratios? For more check outUSEFUL REAL ESTATE INFO www.sellingwarnerrobins.com Anita Clark Realtor Source: http://sellingwarnerrobins.com/2014/02/how-much-home-can-you-afford/