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How much home can you afford?

Most people have a general idea of how much they feel comfortable spending. It's equally important to know how much your lender calculates you can afford. With assistance provided by your Cressy & Everett Real Estate sales professional, you'll be able to better prepare the many details required during the financing application process.

When you want to simplify the buying process, contact our mortgage partner at Dunbar Mortgage & Associates. They'll work with you one-on-one to determine the best loan program for you.

Dunbar Mortgage & Associates is licensed in Indiana and Michigan, providing a full range of mortgage programs to assist with the purchase of a new home or in refinancing your existing home. They offer some of the most competitive rates in the area. Call them directly at 574-287-3500 or at dunbarmortgage.com

• Evaluate your financial situation as the lenders do. Typically, your total monthly housing costs should not exceed 28 percent of your gross monthly income. Or, housing costs plus any outstanding monthly long term debt (car loans, credit card balances, etc.) should not exceed 36 percent of gross monthly income.
• Ask how your lender determines the total monthly housing cost figure. It usually includes your mortgage principal and interest payments, property taxes and hazard insurance.
• Determine how much your financial institution is willing to lend you by completing our Mortgage Calculator or calling a Cressy & Everett Real Estate sales professional for help during the prequalification process.
• Know how much you can afford in monthly payments. Lenders factor in sales price and down payment, but place more importance on how much you can handle your monthly expenses.
• Become a preapproved buyer. Preapproval gives you more buying strength since the lender makes a credit decision and preapproves you for a certain mortgage amount. Youíll know what price range your lender will approve and you'll be in a position to make an offer as soon as you find the right home.