what's the best way to find out? mortgage

what's the best way to find out how much mortgage i would qualify for?

i'm still just in the day-dreaming phase of buying my next home, but i would like to have an idea of where i stand in the mortgage qualifying process.

this thought is both exciting and scary. it would be the first time i buy something BY MYSELF.

i'm getting a stomach ache just thinking about it.

what's the best way to find out? mortgage

Speak to a mortgage broker or bank - they will look over your finances and see what you are qualified to spend.

Re: what's the best way to find out? mortgage

Bankrate.com has some excellent calculators on their web site that determines affordability. They usually have a few articles or links titled "How Much Can I Really Afford a Home" or something like that. In my experience going to a mortgage broker or banker means they will give you a very liberal sense of what you can afford as they only factor on gross income and then assume you dont need vacations, have medical emergencies, car issues, etc..

According to what a mortgage broker once told me when I was shopping for a loan many years ago, I could afford a condo/co-op in the 250-300K range when my salary at that time was $50-55K . In reality, you have to find out what is most comfortable for you - some people have no problems being aggressive and using 50% of their take home pay for housing costs, while others don't want more than 15-20% for same. It also depends on how much $$ you have available for downpayment Suze Orman's web site also has some good info on how to go about it. Good luck!

Edit: actually, here is the link:

http://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx

http://www.realtor.com/mortgage/tools/affordability-calculator/

Message edited 6/9/2016 3:42:27 PM.

Re: what's the best way to find out? mortgage

Posted by EclecticEsq10810

Bankrate.com has some excellent calculators on their web site that determines affordability. They usually have a few articles or links titled "How Much Can I Really Afford a Home" or something like that. In my experience going to a mortgage broker or banker means they will give you a very liberal sense of what you can afford as they only factor on gross income and then assume you dont need vacations, have medical emergencies, car issues, etc..

According to what a mortgage broker once told me when I was shopping for a loan many years ago, I could afford a condo/co-op in the 250-300K range when my salary at that time was $50-55K . In reality, you have to find out what is most comfortable for you - some people have no problems being aggressive and using 50% of their take home pay for housing costs, while others don't want more than 15-20% for same. It also depends on how much $$ you have available for downpayment Suze Orman's web site also has some good info on how to go about it. Good luck!

Edit: actually, here is the link:

http://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx

http://www.realtor.com/mortgage/tools/affordability-calculator/

Re: what's the best way to find out? mortgage

These sites don't tell you what you can afford. They tell you what banks will lend you.

Please be smart. Figure out a budget. What are you comfortable paying each month, plus other bills and expenses and subtract from earnings.

I bought a house prices 40% of what I qualified for. You need to think about lifestyle and how much that costs. Banks will loan you an amount assuming very little discretionary funds or other expenses. Do the real math and decide what you can live with.

Re: what's the best way to find out? mortgage

Banks are in the market to lend you way more than you can really afford. You need to figure out what you pay for rent plus all utilities, and then add in money for taxes, pmi, insurance, and home repairs. None of that is accounted in those calculators. You do not want to be house poor.