When you are wondering “how much can I afford to spend on a house,” the bottom line is what size of home loan you can qualify to borrow. There are several variables from your personal financial history that will factor into the answer, including:
• Your income
• Your credit rating
• Your existing debt
• Your down payment
To those existing factors, you can add some variables of the housing market, and your own choices as you plan to assume a mortgage:
• The mortgage term (fifteen years,thirty years, etc.)
• The current interest rate
• Private mortgage insurance (if your proposed down payment is an amount less than twenty percent of the price)
• The current real estate market where you live
You can plug the relevant numbers into an online “how much house can I afford” calculator, and the calculator should give you an approximate answer for the amount of loan you should be able to take out.
How Much House Can I Afford -- A Firm Answer
Another approach is to go to your bank and request pre-approval for a loan. The online calculator will give you a ballpark figure that should be a fairly accurate estimate of your range, but with a pre-approved loan in hand you will know exactly how high you can go in your home-shopping.
Your bank will take all the same factors into consideration, but instead of a guess you will have a firm number in hand when you begin to look at homes. You won’t be in for any unpleasant surprise when you come to the table with an offer and then discover that your bank can’t back you as far as you had expected.
Having a pre-approved loan also facilitates your ability to move quickly on a house when you do find the right one. Time can be of the essence—especially if you have competition for the purchase of the home you have your eye on. Very often, the buyer who first brings money to the table is the buyer who actually walks away with the title. With your loan pre-approved, you won’t have any hold ups in the process, because you won’t have to be waiting to hear back from the bank.
If you want to buy a home, but can’t yet qualify for a bank loan for any reason, call us to find out about the Rent to Own solution.
We’ve got homes available for Rent to Own now, and it’s easy to qualify. We’ve also got some great mortgage brokers, some might even call them miracle workers, we can refer you to. Call us today!
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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.
Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!
Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!
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