Financing your home can be a complicated process.
They key to success and a good experience is being prepared with what to expect and having a realistic time frame as it relates to the process. When considering mortgaging a property, be sure to consider the following key factors:
- How much home can you afford? Use the below mortgage calculator to determine if the monthly payment fits with your budget.
- How much money do you have available for a down payment? The answer to this question is key to what type of mortgage you can get.
- How is your credit and debt load? Most lenders will follow the 28/41 rule. This rule of thumb states that your monthly mortgage payments shouldn’t exceed 28% of your gross annual income. Additionally, your mortgage and all your other debts (car, credit cards, student loans, etc) shouldn’t exceed 41% of your gross income.
- Who are you going to trust to write your loan? There are many options available to you for mortgage products. It is a good practice to compare rates and fees and then chose the product that best accomplishes your goals. Below you will find one of my recommendations and my personal choice for my own home loan.
