Buying real estate with a mortgage is frequently the most significant personal investment most people make. How much you can afford to borrow is determined by a variety of factors. You must assess not only your financial situation, but also your preferences and priorities. There are a few steps to know.
To determine how much house you can afford, there are a few key factors, including your household income, monthly debts (such as car loan and student loan payments), and the amount of available savings for a down payment. As a home buyer, you’ll want to feel confident that you understand your monthly mortgage payments.
The interest rate you receive also affects how much house you can buy because a lower rate could result in a much lower monthly mortgage payment.
Getting pre-qualified for a house loan can help you build a reasonable housing budget, even though your individual savings goals or spending patterns may have an impact on your affordability.
A lender is interested in how much income an applicant earns, how many demands are placed on that income, and the potential for both in the future, in short, anything that could jeopardize the lender’s ability to be paid back. Income, down payment, and monthly expenses are commonly used to qualify for financing, while credit history and score determine the interest rate on the financing itself.
You’ll need to evaluate your options to determine which type of mortgage loan is best for you. Hawk Mortgage Group works with FHA-approved lenders to get you the ideal mortgage rates possible, offered over terms of 5, 7, 10, 15, 20, and 30 years. At Hawk Mortgage Group, with our professional team we’ll find the best rate for your needs. There are numerous types of mortgage loans available, each designed to meet the needs of a wide range of borrowers.
Before searching for a home and mortgage, consider how much you can afford to put down and how much you can afford to pay each month. As an example, supposing you are purchasing a home at the average national sale price ($383,000 in Q1 2021), with the standard down payment for a conventional loan (20%), average 30-year fixed-rate mortgage (3.13% in April 2021) and 5% closing costs (these vary from 2-6%). In this case, the upfront payment would be $92,000, with monthly payments of $1,313.
Simply to determine how much you can afford, take your monthly household income and subtract your monthly household expenses. If you currently rent, keep in mind that your mortgage payments will replace your rent payments.
Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits. Hawk Mortgage is here to assist you every step of the way. The VA guarantees a portion of your VA Home Loan, allowing us at Hawk to offer you more favorable terms. VA does not require a down payment.
We provide individualized services to make the process easier and provide guidance as you need. With that, our loan experts assist you in getting the best home loan for you and your family. Let us to assist you in locating the loan program that is right for you with our experience with thousands of homebuyers.
725 N. Hickory Avenue; Suite 200
Bel Air, MD
Office : 443-619-7900