Before you take the plunge into homeownership, it is important to consider how much home can you afford. When making this decision, it is a good idea to consider the factors that are used by mortgage lenders when determining how much of a loan you can receive.

1. How Muc
HOME
CAN YOU AFFORD?
fron -en
rati
bac -en
rati
dow paymen
percentag
monthly percentage based on
your yearly gross income and
anticipated monthly payment
associated with your loan
How do lenders determine how much you can borrow?
LENDERS CONSIDER THREE PRIMARY FACTORS WHEN DECIDING
HOW MUCH TO LEND YOU.
percentage of your gross
income that is needed to
cover all of your debts
percentage of the total cost of
the home that you are able to
make as a down payment
most lenders do not
want your monthly
payment to be more
than 28% of your gross
income
28%
40%
most lenders do not
want your amount of
debt to be more than
36% of your gross
income
36%
45%
most lenders prefer a
20% down payment,
but some will allow
significantly lower
amounts
20%

2. some lenders will still
approve a loan with a
monthly payment as
much as 40% of your
gross income
some lenders will
allow your amount of
debt to be as high as
45% of your gross
income
Looking at your personal situation
YOU NEED TO CONSIDER YOUR PERSONAL SITUATION BEFORE
DECIDING HOW MUCH YOU CAN AFFORD AND WHEN IS THE
RIGHT TIME TO BUY.
Is it an ideal time to buy?
Have you researched the local market stats?
Do you have a steady job?
Do you have any anticipated
major expenses?
What are your front-end
and back-end ratios?
For more check outUSEFUL REAL ESTATE INFO
www.sellingwarnerrobins.com
Anita Clark Realtor
Source: http://sellingwarnerrobins.com/2014/02/how-much-home-can-you-afford/