affordability

Home Buying Happy Hour

Join me at The Pint House in the Short North to find out everything you need to know about purchasing a home while enjoying a complimentary drink and appetizers!

You will receive expert insight from Lisa Billings, a VP of Mortgage Lending and myself, a local real estate agent who would be happy to answer all of your specific questions. Regardless of what stage you are at in the home buying process we feel confident we can provide helpful information from improving your credit score and deciding on your budget to how to find the best home for you in the right area!

THE PINT HOUSE I  THURSDAY, FEBRUARY 4TH  I  5:30PM - 7:30PM

Please RSVP for this free event by clicking here as space is limited. We hope to see you there!!

All I Want For Christmas Is a House

The holidays are a time to reflect on the year, cherish the people in your life and dream about the future. Embrace the Christmas tradition of giving gifts and give your family the best one by starting to plan for your home. Below is a great affordability calculator and you can also check out my post "How Much House Can You Afford?" or contact me to go over all of your options.

Most importantly, enjoy the time with your family during this holiday season. From mine to yours, have a very Merry Christmas and a happy New Year!!

Merry Christmas from Columbest Homes!

How Much House Can You Afford?

Your lender decides what you can borrow, but you decide what you can afford.

Lenders are careful, but they make qualification decisions based on averages and formulas. They won't understand the nuances of your lifestyle and spending patterns quite as well as you do. So, leave a little room for the unexpected - for all the new opportunities your home will give you to spend money, from furnishings, to landscaping, to repairs.

For conventional loans, banks use a ratio called 28/36 to decide how much borrowers could borrow. An approved housing payment couldn't be more than 28 percent of the buyer's gross monthly income, and his or her total debt load, including car payments, student loans, and credit card payments, couldn't be more than 36 percent.

Housing Payment < 28% gross monthly income | Total Debt < 36% gross monthly income

“For example, an individual with a monthly income of $5,000 who adheres to the 28/36 Rule would be able to spend a maximum of $1,400 on monthly housing expenses, which would include mortgage payments, home insurance, property taxes and other housing-related expenses, such as condo fees. An additional $400 would be available for other debt such as credit card expenses and car loans.”

As home prices have risen, some lenders have responded by stretching these ratios to as high as 50 percent. No matter how expensive your market though, we urge you to think carefully before stretching your budget quite so much.

Deciding how much you can afford should involve some careful attention to how your financial profile will change in the upcoming years. In the long run, your own peace of mind and security will matter most.

There are multiple loan scenarios from type of loan (conventional, FHA, VA), length of loan, down payment, cosigner, etc. that changes the qualification standards and the monthly payments. To find out how much house you can afford contact me so I can put you in touch with a great, trusted lender!                                                        

 
 

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