There's 1 Reliable Way to Learn How Much Home You Can Afford

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

This is the way to figure out how much home you can afford:

 

 
 
There's 1 Reliable Way to Learn 
How Much Home You Can Afford 
 
 
Want to know how much home you can afford?  

To do that you must consider ... 
 
  • Your Income
  • Outstanding Debt
  • Credit Scores
  • Savings Accumulated for Down Payment/Closing Fees
  • Interest Rate
  • Loan Term
  • Property Taxes
  • Possible HOA Fees in play
  • More

Each of the items listed above should be likened to "ingredients" needed for a recipe.  Which ingredients ... and the amount of each ingredient used ... formulates YOUR personal home affordability recipe.  

So HOW do you figure your personal home buying and financing recipe?  How do you know WHICH "ingredients" are to be used?

If you're a prospective borrower that's already performed some research online, you've probably run across a very elementary bit of assistance in this regard ... home affordability calculators.  A myriad of websites offer them and they can help prospective borrowers understand the basics.

However, I must offer this word of caution regarding their use:  These calculators are only as reliable as the "recipe and ingredient" information plugged into them.  

And therein lies my concern for hopeful buyers - borrowers using these calculators.  They rely too heavily on the answers and findings received when using them ... and they think they're infallible or totally reliable.

I like to suggest to potential borrowers that they should not rely too heavily on the results found using these calculators.  The possibility of error is just too high.  Plug in the wrong info or numbers, erroneous information comes back.  Information that won't do anyone good and in fact, can actually cause harm.

Now don't get me wrong, home affordability calculators can be useful as a tool.  But for reliable definitive information regarding what you can afford and be approved for you must talk to a loan officer.  

That is why I always urge prospective home buyers - borrowers to reach out to a loan officer as soon as they decide to buy (or refinance) a home ...    

The following is just one example of why I believe in the wisdom of taking this action:
 
I recently had a client that, prior to contacting me, had utilized a home affordability calculator they'd found online.  

The client was absolutely 110% sure they already knew what price home they could afford.  Only thing was, they had used incorrect information ... incorrect "ingredients" ... when using the calculator.  

Upon hearing this, my client  went through a string of emotions and reactions. 
 
First, they were incredulous and mad.  Then frustration set in.  The "truth" was now their enemy.

Why?

The homes they had hoped to view and the areas in which they ultimately hoped to buy, were not really in their price range.  Their disappointment took a real toll on them.  They felt short-changed.  They were upset with me.  

It took them a good while to regain their emotional footing.  But eventually, their desire to buy a home returned.  They moved forward, received a Mortgage Approval, and closed their loan successfully.  

Now I know it seems like I beat this drum loudly and incessantly.  But I do so because I feel the message is important ...  

The earlier you talk to an experienced knowledgeable loan officer about your upcoming financing, the better.  The information gained ... the direction and guidance received ... can prove invaluable.

Prospective borrowers need to know:  There is no reason to delay or fear talking and consulting with an LO.  Typically there is NO cost involved for doing so. 
 
Consultations and resulting advice dispensed is freely provided with no strings attached.  This is a service I provide prospective clients in New Lenox - Will County - Chicagoland - IL - WI.  

What you gain from speaking to a lender can help save you money.  It can save you time.  And it can eliminate needless frustrations and stress.

I'd say that's the perfect recipe ...
 
 
* Hoping to Buy or Refinance a Home in New Lenox, Will County, or elsewhere in the Chicagoland/ IL - WI area? 

Contact me!  I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.  
 
I'm easily found at:

Gene Mundt
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed #216987
 
American Portfolio Mortgage Corp.
nmls #175656
 
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281
 

  

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   

   Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  

    

 

Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

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Rainmaker
2,670,749
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gabe what a great way to determine how much home one can afford, I like to look at it strictly from a common sense approach it is not what you qualify for it is what you can afford without living on bread and water:))Endre

May 17, 2018 11:05 PM #1
Rainmaker
3,954,205
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for reblogging the post. I hope home buyers will read it and learn 

May 18, 2018 03:13 AM #2
Rainmaker
2,346,851
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Good morning, Gabe... if anyone's blogs are "reblog worthy," they are certainly those written by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

May 18, 2018 05:25 AM #3
Rainmaker
2,732,995
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

The "live and in person" examination will never be replaced by automation.

May 18, 2018 05:46 AM #4
Rainmaker
2,600,106
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Good morning Gabe. Luckily, I now live in a state where Gene is licensed. He is the baker and chooses the ingredients wisely! Enjoy your day!

May 18, 2018 05:52 AM #5
Rainmaker
2,149,285
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Happy Friday to you, Gabe. This is an excellent reblog choice with great information that consumers can really benefit from.

May 18, 2018 06:26 AM #6
Rainmaker
4,552,751
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Thank you very much, Gabe, for sharing this excellent reblog selection.

May 18, 2018 06:53 AM #7
Rainmaker
1,143,590
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Thanks so much for sharing this post again, Gabe Sanders ... it's greatly appreciated.  Hopefully, the message resonates ...

Gene

May 18, 2018 09:52 AM #8
Rainmaker
3,481,654
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gabe, excellent choice for a reblog, and the best way is to give a lender a call.  They have the last say.

May 18, 2018 01:42 PM #9
Ambassador
3,627,665
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

This is an excellent reblog, Gabe. Touching base with the lender early in the process.

May 18, 2018 07:43 PM #10
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Rainmaker
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Gabe Sanders

Stuart Florida Real Estate
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