When clients come into my office, one of the first things we determine is how much house can they afford. Knowing this important bit of information is vital in starting a good home search and making sure we find a home for sale in Summerville that they can successfully purchase and secure a mortgage for. But what if you don’t know how much home you can afford?
The price you can afford to pay for a home will depend on six factors:
1. Gross income
2. The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
3. Your outstanding debts
4. Your credit history
5. The type of mortgage you select
6. Current interest rates
As a general rule, lenders don’t want borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on debts. Part of my job is to help you find a great mortgage lender if you are not already working with someone to help you secure your loan. Read More at How Much House Can I Afford?