So, you’re probably asking yourself, “How much house can I afford?” and the answer is, it really depends.
The very first thing you should do is get yourself Pre-Approved with a solid lender. A good example would be Summit Funding, which is a National Private Lender that services it’s own loans. What this means is, they don’t sell your loans off to investors so they don’t have any investor overlays. (Overlays are restrictions banks put on loans above and beyond what the actual program guidelines call for. Example, Summit follows the FHA loan guidelines which is a 580 minimum credit score while other banks will add an additional requirement such as 620.)
What many people don’t consider when planning the purchase of a home are things such as Home Owners Insurance, Private Mortgage Insurance and Property Taxes. A home mortgage is more than just a principle and interest payment.
Your Home Owners Insurance is going to be based on the area, size of the home, deductible, value etc.
Private Mortgage Insurance is something you will likely have o pay if you are a) putting less than 20% down or b) have a low credit score that puts you into an FHA mortgage (which is a Government Guaranteed Mortgage that protects he lender).
Your typical mortgage may look something like this:
Total: $1,200 per month
How much house can I afford? That is up to a loan officer to help you figure out exactly. Outside of just being able to establish the loan program that will work best for your situation they will be able to make sure that your debt to income ratios fall under minimum requirements. A great loan officer will think outside the box to help you get approved for a home loan which is why I personally refer all of my clients to Aaron Denton at Summit Funding. He worked out our home mortgage loan for my husband and I before I was even a realtor and without his help, we wouldn’t have our home right now.
You are welcome to call Aaron Denton or Brandon Walker at Summit Funding so that they can help you get pre-approved for your home loan at 513-322-1440
Tell them Cristen sent ya.
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