How Much Can You Afford?
Deciding how much mortgage you can afford is an important decision. Many factors come into play. How much can I borrow? How much can I put toward my down payment? What size monthly payment can I afford?
If you plan on a 30 year mortgage, you can probably make a lower down payment and still manage the monthly payments. If, on the other hand, you plan on a 15 year mortgage, you'll probably want to make a larger down payment to keep your monthly payments in line with what you can afford.
How large a down payment can I make?
Many buyers look at their cash on hand as their only source for their down payment. This simply is not the case. One way to fund or partially fund a down payment is by using a gift. Parents, grandparents and other family members are often eager to help by making a cash gift toward the purchase of your home.
But these are not your only options. We can help you explore all your down payment options, including low down payment and possibly 100% mortgage financing options you may qualify for. Call us at 610-398-9500 to see how we may be able to help you.
What size monthly payment can I afford?
When determining what size monthly payment you can afford, you'll want to consider what other monthly expenses you have. Tangible expenses such as car payments, day care and utility bills, credit card balances, all play a major role in how large a monthly payment you can afford. This will all factor into your debt ratio calculation and should be given careful consideration when taking on a new obligation. Let Consumer Trust Mortgage calculate your debt to income ratio with one simple call to 610-398-9500. We never charge an application fee and would be happy to talk to you with no obligation.
There are also the intangible expenses or lifestyle expenses that you'll want to consider. Things such as dining out, travel and when you buy your next car can effect how much you can afford. Are you willing to curtail or delay some of these expenses in order to afford a larger monthly payment?
How much can I borrow?
This is a question you'll want to get answered before you begin your home search. This is something that were here to help you with. Our mortgage calculators will help you see how your down payment, monthly payment and the amount you borrow are all interrelated.
We can answer any questions you may have about the mortgage process. But the best way we can help is by getting you pre-qualified for a mortgage loan. To get started, simply complete the form below to let us know a good time to contact you. We look forward to being of great help to you!
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