Home Buying is Both Logical and Emotional
When it comes to purchasing a home, people use both sides of their brain: left and right. The left part is used for logical decisions and deciding upon a budget and monthly payment appropriate given the financial circumstances. The right part is used for emotional decisions relating to how a home appeals to the senses. For buying a home, it is necessary to have both elements covered.
Real often a mortgage lender, even now, will qualify you for a monthly mortgage payment higher than you would want. It is important to not let your emotional side beat out the logical side. When you decide up front what a comfortable payment is, then you need to stick with that plan.
If you have been paying $800-1,000 a month in rent, you could easily move up to a house payment of $1,200-$1,400. The total payment would be principal, interest, taxes and insurance (referred to as PITI). The reason you can go to this level is because if you have been renting, you donít currently have a home interest mortgage deduction. Once you figure this in, your payment, in consideration of the tax deduction, will be about the same.
I work with clients to ensure that they stay within their boundaries that are decided by using a budget. I work with the best mortgage lenders; they will give you accurate information and advice while making sure that clients do not accept mortgages that are not appropriate for them. In the past 5 years, even with the increased practice of sub-prime mortgages, my clients have not been forced out of their homes because of inability to pay.
This is the kind of service I would provide to you as my future client.
This calculator will help you determine how much money you qualify to borrow. The results are informal. You will be subject to a credit approval from your financial institution taking into consideration existing debt load, amount of down payment, income and other variables.
This calculator will help you determine what your mortgage payments will be based on purchase price, interest rate and mortgage term, as well as other factors. The amortization table shows what the interest and principal payments will be over the term of the mortgage.