Home Loan Toolkit
This Home Loan Toolkit can help you understand what "affordable" actually means.
Most people start the home buying process by searching for homes online and using the Mortgage Calculator provided on many sites to determine if they "can afford" the property.
Once they find a home they like, then they typically will talk with a lender ( if they haven't already ) to get "pre-qualified" or start the loan process.
The problem with Mortgage Calculators is they include only partial information. They can determine an estimated payment based on the loan amount, the annual interest rate, and the term of the loan, but they don't include the other aspects that come with payments. Such as mortgage insurance, property taxes, homeowners insurance, and HOA fees if applicable.
Then there's the BIG question...What does "affordable" mean to you? Just because a lender says you are "qualified" for a certain amount, doesn't mean that amount is "affordable" for you. That information comes by estimating what is left after subtracting your monthly debts and your lifestyle. How much cushion money for travel, the unexpected, dining, home repairs, etc.
When obtaining a loan, you also need to understand your credit. If your credit score is below 700, you will likely pay more for your mortgage. Did you know there can also be errors on your credit report? The Toolkit below can help you with finding errors and correcting them.
These are just a few things to consider when you want to buy a house. We strongly recommend to all people interested in buying a home, that you work through this toolkit BEFORE you start the process. Your Home Loan Toolkit is a free resource and a very helpful one. The more educated you are, the more money you can save.
Click Here to Download Your Home Loan Toolkit