Q How much home can I afford?
A You may be able to afford more home than you wish to spend. Start out with an idea of how much of your income will be left after the mortgage payment and utilities. This is the amount you will have for everything else you want and need your income to cover: food, clothing, car payments, insurance, social activities, etc.
Your mortgage lender will determine what mortgage payment you qualify for by using your income, credit score, current debt (car payment, credit cards, etc.) and the down payment you will be making. The amount the lender decides you qualify for should include hazard insurance, taxes, and mortgage insurance, if applicable. There are guidelines as to the percentage of income that should be used for fixed monthly payments, including the mortgage payment. These vary according to mortgage programs. A conservative amount for your debt-to-income ratio, including the mortgage payment, is 36%. This is the percentage of your income used for house payment, credit cards, auto and other installment payments. You could be approved for a mortgage with a much higher debt ratio.
Find a mortgage lender you feel you can trust and are comfortable with during the transaction. This is one of the most important relationships you will build involving what could be the largest investment of your life!
 Patsy Bailey Mortgage Banker |
 4801 Lang Ave NE Suite 100 Albuquerque, NM 87109 4001 Office Court Ste 603 Sante Fe, NM 87507 Cell: 505.715.3231 Office: 505.473.4045 ext.109 E-mail: patsybailey13@gmail.com |
Equal Housing Opportunity
For more information on home financing, visit my Albuquerque Mortgage Page.
