This simple to follow infographic should make clear what lenders look at when determining if they will loan you money to buy a home. Also provided are percentages they take a long look at for items such as your monthly payment, your debt ratio, and your down payment. While these numbers should be used as a guide, it is always advisable to discuss specifics with a lender.
When you are considering the amount you can afford when buying a home, the questions in the visual graphic below can help set your financial compass. Knowing upfront what your wants and needs are vs. what you can afford to pay will definitely determine your course of action. If you try to deviate above what you can comfortably afford, regardless of the amount your lender says they will loan you, you could be headed for disaster.
Do you know what the local real estate market is doing right now? Should you buy or wait? Is your job situation stable? Are you planning on living in the home for several years? Any major expenses upcoming? If your front-end and back-end ratios are below the top limit, you are probably in a great position to make a home purchase.
Additional Buyer Resources:
Home Buying Information via Huliq
Real Estate Buyers courtesy of List.ly
Advice for Buyers on Realtor.com
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This article on Do You Know How Much Home You Can Afford was written by Anita Clark. She helps consumers who are looking to buy or sell homes in Warner Robins Georgia. Follow Anita on Google Plus.