This is the way to figure out how much home you can afford:
There's 1 Reliable Way to LearnHow Much Home You Can AffordWant 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
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.
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 MundtMortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed #216987American Portfolio Mortgage Corp.
Mortgage Originator - NMLS #216987
IL Lic. #031.0006220 - WI License #216987
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.
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